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Jay-Z’s funding agency is concentrating on a $500mn fund to again South Korean way of life corporations as US non-public fairness bets on the worldwide reputation of Korean popular culture.
MarcyPen Capital Companions, which is backed by the rapper, is working with Hanwha Asset Administration, the monetary arm of one among South Korea’s largest conglomerates, to lift a personal fairness fund that may concentrate on leisure, magnificence, meals and way of life corporations pursuing worldwide development.
The businesses stated they’ve signed an settlement to launch a collection of Asian funding funds on the Abu Dhabi Finance Week occasion.
Korean popular culture has exploded in reputation lately, with music teams akin to Blackpink and BTS filling arenas world wide and productions akin to Squid Recreation and KPop Demon Hunters dominating streaming platforms.
“There is a chance for the worldwide growth of Korean corporations,” stated Jong-Ho James Kim, chief govt of Hanwha Asset Administration. “Normally Korean corporations use their very own capital or company funds, but when there may be third-party help, then our development potential will probably be better.”
South Korea’s authorities has invested billions of {dollars} into the cultural sector as a part of its hallyu, or “Korean wave”, coverage to spice up the nation’s economic system and smooth energy by means of cultural exports.
The “Korean wave” — which incorporates industries akin to leisure, magnificence, meals and trend — generated greater than $31bn globally final yr, stated Bernie Cho, president of DFSB Kollective, a Korean music export company. “[It] is now the second-largest shopper items export out of South Korea” after automobiles, Cho stated.
Kim stated non-public fairness had not beforehand funded Korean tradition, leisure and sports activities ventures aiming for international growth.
Hanwha will supply the businesses, Kim stated, whereas MarcyPen has “an excellent monitor document in working funds for way of life, trend and meals” and the power to determine high-potential targets.
Hanwha Asset Administration is a part of Hanwha Group, which additionally owns South Korea’s largest defence contractor. The cash supervisor has greater than Won122tn ($83bn) in belongings beneath administration.
MarcyPen was fashioned in 2024 by the merger of Marcy Enterprise Companions, which was co-founded by Jay-Z, and the funding arm of Pendulum Holdings.
The corporate “offers strategic capital to growth-stage shopper companies that create, transfer and lead tradition”, based on its web site. It manages $1.1bn in belongings. Previous investments embrace minimalist cosmetics maker Benefit Magnificence and Rael, an natural female care model.
“South Korea is a cultural nexus of Asia, influencing international traits in magnificence, content material, meals, leisure and way of life, making it the best gateway for our partnership with Hanwha,” Robbie Robinson, managing associate and chief govt of MarcyPen, stated in an announcement.
The fund goals to start elevating cash within the second half of subsequent yr from institutional traders, sovereign wealth funds and rich people.
This text has been amended to make clear the identify of Marcy Enterprise Companions
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