Crescendo closes third Korea fund on $910m

The fundraising process was completed as of year-end 2021. Crescendo said in a statement that the fundraising had achieved one of its key strategic objectives – to attract international investors – within three months of launch.

Crescendo’s second flagship fund closed at the hard cap of KRW 450bn (USD 373m) in mid-2018, beating a target of KRW 300bn after 12 months in the market. The LP base was dominated by Korean institutional investors, although there was a smattering of international capital.

Fund I raised KRW 74bn in 2015. There have also been 10 project funds under the name Presto, the most recent of which closed at KRW 43 bn last year. These funds have produced several exits, including digital prototyping company Model Solution, which was acquired by Hankook Tire in a KRW 68.6 bn deal in 2018.

Crescendo was seeded in 2012 by PayPal co-founder Peter Thiel. Historically, LPs have included the likes of Korea Growth Investment Corp, Korea Scientists & Engineers Mutual-aid Association, National Pension Service, and Korean Teachers’ Credit Union.

Crescendo claims to have deployed more than USD 1bn to date, generating a 38% gross IRR from fully and partially realised transactions as of the end of 2021. Among its 19 employees are nine investment professionals and three dedicated portfolio operations professionals.

The firm was founded by Kevin Lee, an engineer and former technology consultant for McKinsey & Company. It makes growth and buyout investments in industrial technologies, noting they are less competitive than consumer businesses. Semiconductors is an area of particular expertise.

Activity in recent years has shifted toward start-up models, though still with a B2B lens. Crescendo has invested as early as the Series A stage, as it did last year with marketing technology provider Biginsight. Standout deals in this vein include a USD 50m investment in Qxpress, a Singaporean e-commerce logistics business also known as Qoo10.

“Since inception, Crescendo has been investing in midcap technology companies that we view as hidden gems in South Korea and assisting them to grow into global champions,” Lee said. “We will maintain our differentiated strategy and approach and continue to generate superior returns by combining in-depth technology expertise and extensive experience in value creation.”

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• Topics
• North Asia
• Industrials
• Technology
• Fundraising
• Growth
• Buyout
• South Korea
• Crescendo Equity Partners