Crescendo raises $350m for Korean tech fund
Crescendo Equity Partners, a private equity firm backed by PayPal co-founder Peter Thiel, has raised over $350 million from international investors for its fourth buyout fund, which targets a total of $1 billion. The first closing exceeds two-thirds of its overseas fundraising goal of $500 million, and additional capital is expected from Korean investors. Due diligence for those commitments is currently underway.
The fund will focus on acquiring controlling stakes in Korean technology companies valued between 50 billion won and 500 billion won, roughly $37 million to $370 million. Priority sectors include semiconductors, electronics, business-to-business software, and cybersecurity. The firm specializes in identifying businesses with strong domestic positions but limited global reach, aiming to help them expand internationally.
Since its founding in 2012, the group has invested in 29 companies, including HPSP, Seojin System, and Hanmi Semiconductor, without losing principal capital. Its first blind fund delivered a gross internal rate of return exceeding 30 percent, while the second fund recovered full invested capital through the sale of iText, a PDF software provider, to another global private equity firm.
Thiel Capital executives participate directly in the firm’s investment committee, and Thiel’s global network assists portfolio companies in overseas expansion. The third blind fund, raised in 2021, broadened its scope to artificial intelligence, biotechnology, and cybersecurity, with investments in Medipost, Fonexia, and Mindwareworks.
CEO Lee Gi-doo stated that the first closing was completed “Despite the uncertain and challenging investment environment at home and abroad, we” successfully completed the first close of our fourth fund thanks to the trust of global institutional investors. He added that the team plans to leverage its technology expertise and partnership with Thiel to help competitive Korean technology companies expand globally.
