Thiel-backed Crescendo raises $350 million in first close of Fund IV

Crescendo Equity Partners raised more than $350 million in the first close of its fourth buyout fund, against a $1 billion target, The Korea Herald and Seoul Economic Daily reported Nov. 5. The Korea-focused technology firm is seeking $500 million outside Korea and $500 million from Korean investors.

Overseas commitments cover more than 70% of the $500 million foreign target, and Crescendo expects overseas capital to exceed it as remaining institutional discussions conclude, according to the reports.

For allocators, the remaining capacity sits in the Korean tranche: overseas commitments are expected to exceed the $500 million foreign sleeve, while domestic investors are still in due diligence. Fund terms were not disclosed.

Fund IV will take controlling stakes in Korean small and mid-sized technology companies valued at roughly 50 billion won to 500 billion won, or about $37 million to $370 million. The focus is semiconductors, electronics, business-to-business software and cybersecurity.

Crescendo's strategy is to buy Korean technology companies with strong domestic positions and limited global reach, then help them scale internationally, including through buy-and-build. Thiel Capital executives sit on the investment committee, and Thiel's network supports portfolio companies' overseas expansion, the reports said.

Crescendo was founded in 2012 through a partnership between Peter Thiel, the PayPal co-founder, and CEO Lee Gi-doo. It has invested about 1.52 trillion won across 29 companies and manages roughly 1.8 trillion won of cumulative assets. Its third blind fund raised $1 billion in 2021, matching Fund IV's target.