Upbit operator Dunamu draws investment from HK-based PEF

[Photo by Park Hyung-ki]

Anchor Equity Partners, Hong Kong-based private equity firm, has invested 150 billion won ($124 million) in Dunamu, the operator of Upbit, the largest cryptocurrency exchange in South Korea.

The private equity firm acquired Dunamu’s shares held by existing shareholders, such as Kakao Ventures, for about 500,000 won per share at a premium before some of their funds expired.

The purchase would give about 1 percent in Dunamu whose valuation has soared amid digital coin frenzy. Unlisted Upbit share trades at around 405,000 won that puts the company’s over-the-counter value at around 14 trillion won.

The deal makes the first PEF investment in a Korean crypto exchange. PEFs are still new to investments in digital assets like virtual coins, blockchain and non-fungible tokens (NFT) as they usually concentrate on immediate returns instead of taking risks in unorthodox assets.

Anchor Equity Partners, established in 2021 in Hong Kong, invests in North Asian countries, including South Korea. It has invested in various sectors in Korea, such as food materials, waste, and contents.

Dunamu has grown rapidly, backed by the cryptocurrency craze. Its accumulated operating profit from January to September last year amounted to 2.59 trillion with sales at 2.82 trillion.

Having expanded by 15 times over just a year, Dunamu also has invested in Woori Financial Group.

The company is yet to unveil its plans to go public.

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