This article was displayed on the ChosunBiz MoneyMove (MM) site at 4:57 p.m. on Nov. 13, 2026.
Private equity (PEF) firm VIG Partners is creating a dedicated growth capital team. Aiming to expand beyond mid-cap buyouts to minority stakes in high-growth companies, the unit is expected to be led by CEO Lee Cheol-min.
According to the investment banking (IB) industry on the 13th, VIG Partners has finalized a plan to launch a growth capital unit and begun related steps including hiring. The centerpiece is a two-top structure in which CEO Lee oversees growth capital while CEO Shin Chang-hoon runs the existing buyout unit.
VIG Partners, which started in 2005 as Bogo Fund, is considered a first-generation PEF manager in Korea. Of its 34 cumulative investments, 30 were control acquisitions, underscoring its focus on buyouts, especially in mid-caps. Burger King and Preedlife are among its notable exits.
This year, VIG Partners put CEO Shin at the forefront. Even when it brought in additional deputy-level talent in September, it built the investment team around Shin. There had been talk that CEO Lee stepped back from the front line, but he is set to take charge of the growth capital unit.
A slowdown in mergers and acquisitions (M&A) and a shortage of assets for sale are seen as pushing VIG Partners to expand into growth capital. In the 20 years since Korea introduced PEFs, many prime assets have changed hands, and some say the key assets are inevitably companies already acquired by PEF managers.
According to the Financial Supervisory Service, participation-type investments by domestic institutional-only PEFs totaled 23.7 trillion won last year, down 27% from 32.5 trillion won in 2023. The number of portfolio companies also fell to 343 from 431 a year earlier. The buyout-centered M&A market has lost momentum.
The spread of artificial intelligence (AI) also bolstered the case for launching a growth capital unit. As AI companies’ massive funding needs have outgrown what venture capital (VC) alone can provide, PEF managers have moved in to fill the gap. IMM Investment and No & Partners’ investment in Rebellions is a prime example.
A dedicated growth capital organization is also an expansion card VIG Partners has toyed with for years. When it was managing its fourth fund, a 950 billion won vehicle formed in 2020, it already considered setting up a dedicated team. A concept that lingered at the review stage has taken shape after several years.
It has already passed a trial run. In May, VIG Partners invested 30 billion won in Minish Technology, a dental restoration solutions company, securing about a 20% stake. The company was valued at about 150 billion won. It was a rare deal for VIG Partners, which had mainly pursued buyouts.
An IB industry official said, “There was talk for a while that Shin would run the show alone, but in the end they settled on dividing roles,” adding, “The two CEOs will each take buyouts and growth capital and steer the house together.”
