MBK Partners has successfully closed its fifth blind-pool fund on its $6.5 billion hard cap, the firm said on May 20. It is the third largest investment vehicle in Asia to date after a $10.6 billion fund raised in 2018 by Hillhouse Capital and a $9.3 billion fund launched in 2017 by KKR.
The largest private equity firm in Korea had initially planned to hold the final closure of Fund V in the second half of 2020. After its closure the total assets under management of the firm rose to $22.5 billion.
The firm said it prides itself on consolidating its position as Asia’s largest independent private equity firm, adding that various track records have become the basis for such growth.
MBK Partners has sold Coway, Orange Life, and Daesung Industrial Gas over the past year distributing $5 billion to its investors.
MBK Partners sold Coway to Woongjin Group at an equity multiple of 3.3 times and internal rate of returns (IRR) of 26 percent. It also sold Orange Life to Shinhan Financial Holdings which generated a multiple of 2.7 times and an IRR of 27 percent. The sale of Daesung Industrial Gases, which was completed earlier this year, generated a multiple of 2.1 times and an IRR of 32 percent.
The firm is supported by more than 50 global limited partners as well as domestic institutions such as the National Pension Service, POBA, Teachers’ Pension, and Korean Reinsurance Company. Market watchers said that MBK Partners’ closure of its fifth fund is meaningful having done so in about six months despite unfavorable global funding conditions caused by Covid-19.
The firm’s predecessor fund closed on $4.1 billion back in 2016 with contributions from the Canada Pension Plan Investment Board, Singapore’s GIC sovereign wealth fund and others. (Reporting by Hee-yeon Han)