DS Asset Management closed an 11 billion won ($7.7 million) blind fund last month targeting early-stage Korean cosmetics companies, according to industry sources. The Seoul-based firm attracted six institutional investors for the vehicle, which has a five-year maturity and closed-end structure.
South Korean cosmetics exports surpassed $10 billion for the first time in 2024, fueling investor interest in the sector. Yet DS Asset Management acknowledged the sector’s inherent volatility, noting that sales can plummet when consumer preferences shift.
The fund will concentrate on unlisted companies from early to pre-IPO stages, planning to invest in roughly five businesses. DS Asset Management has partnered with Referee, a collective of over 400 beauty influencers, to identify promising targets through a proprietary index tracking YouTube exposure for domestic cosmetics brands.
The firm expects to complete due diligence on its first investment soon. The fund’s modest size and narrow focus on pre-public companies represent a calculated bet that financial returns can be extracted before market sentiment turns—a risky proposition in an industry where product cycles increasingly depend on social media virality rather than sustained brand loyalty.
