South Korean private equity fund ATU Partners has launched a fund dubbed ATU Esports Growth Fund to acquire the world’s famous League of Legends esports team DragonX and invest in California-based talent agency Azyt.

It reportedly has pooled in 20 billion won ($17.2 million) from mobile game and content companies like Kakao Games and The E&M, as well as from institutional investors including Woori Technology Investment and SB Partners, according to sources on Sunday.

It is the first fund devoted to esports both in Korea and in Asia. ATU Partners would onw DragonX, a popular professional esports team for League of Legends, and a significant stake in talent agency Azyt.

Allen DeBevoise, an investment expert in media and exports and managing partner at Third Wave Digital, will serve as the chief advisor to the fund in charge of devising marketing strategies for the portfolio companies and supporting their entry into North America.

Investors are betting big on esports as the industry has a large growth potential with a 20-30 percent growth per year on average.

ATU Partners headed by Jamie Jungmoo Park, a former consultant at McKinsey & Company and head of the global business at esports broadcasting channel OGN, is now planning to add more esports growth funds from next year.

By Shin Chan-ok, Lee Yong-ik and Lee Ha-yeon

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