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Jay-Z’s investment firm is targeting a $500mn fund to back South Korean lifestyle companies as US private equity bets on the global popularity of Korean pop culture.
MarcyPen Capital Partners, which is backed by the rapper, is working with Hanwha Asset Management, the financial arm of one of South Korea’s biggest conglomerates, to raise a private equity fund that will focus on entertainment, beauty, food and lifestyle companies pursuing international growth.
The companies said they have signed an agreement to launch a series of Asian investment funds at the Abu Dhabi Finance Week event.
Korean pop culture has exploded in popularity in recent years, with music groups such as Blackpink and BTS filling arenas around the world and productions such as Squid Game and KPop Demon Hunters dominating streaming platforms.
“There is an opportunity for the global expansion of Korean companies,” said Jong-Ho James Kim, chief executive of Hanwha Asset Management. “Usually Korean companies use their own capital or corporate funds, but if there is third-party assistance, then our growth potential will be greater.”
South Korea’s government has invested billions of dollars into the cultural sector as part of its hallyu, or “Korean wave”, policy to boost the country’s economy and soft power through cultural exports.
The “Korean wave” — which includes industries such as entertainment, beauty, food and fashion — generated more than $31bn globally last year, said Bernie Cho, president of DFSB Kollective, a Korean music export agency. “[It] is now the second-largest consumer goods export out of South Korea” after cars, Cho said.
Kim said private equity had not previously funded Korean culture, entertainment and sports ventures aiming for global expansion.
Hanwha will source the companies, Kim said, while MarcyPen has “a good track record in operating funds for lifestyle, fashion and food” and the ability to identify high-potential targets.
Hanwha Asset Management is part of Hanwha Group, which also owns South Korea’s largest defence contractor. The money manager has more than Won122tn ($83bn) in assets under management.
MarcyPen was formed in 2024 by the merger of Marcy Venture Partners, which was co-founded by Jay-Z, and the investment arm of Pendulum Holdings.
The company “provides strategic capital to growth-stage consumer businesses that create, move and lead culture”, according to its website. It manages $1.1bn in assets. Past investments include minimalist cosmetics maker Merit Beauty and Rael, an organic feminine care brand.
“South Korea is a cultural nexus of Asia, influencing global trends in beauty, content, food, entertainment and lifestyle, making it the ideal gateway for our partnership with Hanwha,” Robbie Robinson, managing partner and chief executive of MarcyPen, said in a statement.
The fund aims to begin raising money in the second half of next year from institutional investors, sovereign wealth funds and wealthy individuals.
This article has been amended to clarify the name of Marcy Venture Partners
