The number of private equity funds established last year exceeded 100, first in history. The number of such funds dissolved last year also reached an all-time high at 42. This trend shows a virtuous cycle where newly-established funds are dissolved after completing investment.
According to the Financial Supervisory Commission on May 9, the number of private equity funds registered as of the end of last year totaled 393, up 109 from a year ago. This was the first time in Korea's history that more than 100 funds were newly established in a single year.
The size of the funds averaged at 86.2 billion won, down from 134.2 billion won a year ago, indicating that there were many cases in which newly-established funds with limited investment experience entered the market centering on small projects.
The amount of funds newly raised last year totaled 9.4 trillion won, down from 10.2 trillion won a year ago, with the amount of investment executed last year estimated at 8.9 trillion won, similar to the three-year average of 9 trillion won.