South Korean investment firm STIC Investments has secured a larger-than-expected capital commitment from the Export-Import Bank of Korea (KEXIM), giving a lift to the firm’s efforts to raise money for its new blind-pool fund.

STIC is raising capital for STIC Pan-Asia 4th Industry Growth Private Equity Fund II, according to sources. The fund’s target size is 500 billion won ($417 million).

The firm’s fundraising had a good start. STIC has been selected as one of external alternative managers by KEXIM for investment in the biotech and healthcare sectors. The state-run bank committed 45 billion won to STIC’s new fund.

The amount was larger than expected as KEXIM ultimately selected two managers – STIC and Invervest – instead of its original plan to pick three, while its total investments in the selected managers remained unchanged at 75 billion won.

The capital committed by KEXIM represents nearly 10 percent of the fund’s target size. Consistent with the predecessor fund, Fund II will focus on growth equity investment opportunities in Asian countries such as China, Vietnam, India and Japan.

The fund will target overseas subsidiaries belonging to domestic corporations or foreign companies that have a business relationship with domestic companies, which coincides with the investment direction set by KEXIM. This, along with the firm’s track record, appears to have convinced KEXIM to choose STIC to commit a larger portion of its funds.

Among the companies invested in by Fund I are a joint venture launched in partnership with Chinese agribusiness company Joyvio, Vietnamese shrimp postlarvae supplier Viet-Uc Seafood, Indian delivery startup Dunzo and Indian hospital-chain Sahyadri Hospitals.

The capital is being drawn down from Fund I at a rapid pace so existing investors in the previous fund, including Korea Post and Military Mutual Aid Association (MMAA), may also re-up in Fund II. STIC will also likely seek to secure additional capital from domestic institutional investors that are planning to select external alternative managers later this year.  (Reporting by Hye-ran Kim)