[Edaily Marketin, Reporter Heo Ji-eun] “CBC Group is a company that can assist biotech firms from A to Z. We want to help Korea’s strong small-to-medium-sized biotech companies that possess excellent technology but struggle to expand globally.”

Global healthcare investment firm CBC Group has presented a long-term investment roadmap for the Korean market. Having left a strong impression on the domestic capital market by acquiring #Hugel in the past, CBC Group announced its ambition to discover small and medium-sized enterprises (SMEs) that form the backbone of Korea’s biotech ecosystem, as well as “the next Hugel” currently in the early clinical trial stage.

According to the investment banking (IB) industry on the 12th, Michael Kyung (Kyung Han-soo), Head of North America and Head of Global Credit & Royalties, and Cho Ki-chul (Billy Cho), Senior Managing Director of CBC Group’s Private Equity (PE) Division and Head of Global Joint Ventures (JV), attended a CBC Group press conference held in Gwanghwamun, Seoul, on the 10th to share their blueprint for investing in the Korean biotech market.

Founded in 2014, CBC Group is Asia’s largest healthcare-focused asset management firm, headquartered in Singapore. Last month, it officially announced its merger with Europe’s GHO Capital, signaling the launch of the world’s largest healthcare-focused investment firm with $21 billion (approximately 28.7 trillion won) in assets under management (AUM) upon completion of the merger. In Korea, the firm made a name for itself in 2021 as an investor in #Hugel, a botulinum toxin company, alongside GS Group and IMM Investment.

The reason why CBC Group, which has signaled its rise as the world’s largest healthcare investment firm, chose to hold its first official event in Korea is clear: to help Korea’s high-potential biotech companies expand globally. The fact that Korean executives Kyung and Cho serve as key pillars of the leadership team driving CBC Group’s global strategy further underscores the importance of the Korean market within the firm.

Registration of a Private Investment Fund for Domestic Institutional Investors Completed

CBC Group plans to provide comprehensive support to Korean SMEs with valuations ranging from 100 billion to 500 billion won, as well as companies in the early clinical trial (Phase 1–2) stages. To this end, the group has completed registration as a private investment fund (GP) exclusively for domestic institutions, thereby securing the option to establish a long-term presence in the Korean market.

CEO Cho explained, “It is practically difficult to invest in Korea’s excellent small but strong companies—with market capitalizations or enterprise values in the 100–200 billion won range—using global dollar funds.” He added, “We completed the registration of the institutional-only private investment fund in advance with an eye toward the future, so that we can make separate investments in promising companies of smaller scale at any time.”

In terms of investment methods, the firm plans to move beyond traditional equity investments or management buyouts (MBO) to adopt advanced techniques proven in the global market. A prime example is an investment model where the fund acquires only the intellectual property (IP) for a new drug and establishes a new subsidiary (NewCo) under the fund to scale up the business.

CEO Cho emphasized, “While Korean biotech companies boast Asia’s top-tier research ecosystems and technological capabilities, they face bottlenecks during the globalization phase—such as global clinical trials and U.S. Food and Drug Administration (FDA) approval—due to a lack of funding and networks.” He added, “By directly investing in new drug IP and combining it with CBC’s infrastructure, which has a proven track record of successful globalization, we can create a mutually beneficial model that expands the scale of partnership deals with pharmaceutical companies to the tens of billions of won.”

The biotech fund currently being established by the CBC Group in partnership with the Korea Investment Corporation (KIC), a sovereign wealth fund, is also progressing smoothly. The fund, to which KIC has contributed $150 million, aims to complete its first closing this summer. CBC Group is participating as a co-manager and investor and plans to work with KIC to provide financial support for promising domestic biotech companies, covering everything from early-stage clinical trials to follow-up R&D and entry into global clinical trials.

CBC Group is also actively recruiting senior talent, including executive-level positions, to expand its workforce at its Seoul office. CEO Michael Kyung stated, “It is rare to find a platform where global offices share real-time experience and insights in a single healthcare sector and operate as a single team,” adding, “We believe now is actually the best time to invest in the Korean bio market, and we will build trust in the market as a sincere long-term partner.”