Private equity firm Affirma Capital is expected to raise about 250 billion won ($222 million) for Ascenta V, its fifth blind-pool fund, with a first close at the end of this year, industry sources said on Friday (October 23).
The final close is expected in the first half of 2021, with a target of 500 billion won.
Affirma Capital started seeking limited partners in the second quarter and has raised more than half of its final target from five investors, including domestic pension funds, mutual aid associations and financial institutions. Investors appear to have made quick decisions to join because of Affirma Capital’s successful exits this year.
The company exited from EMC Holdings this year by selling the company to SK Engineering & Construction for 1.05 trillion won, which generated a money multiple of 18 times. The PE firm bought EMC Holdings for 45 billion won. It also made exits from Daelim Motor, Daelim Motorcycle, Hyundai Autoever, Samyang Packaging and AJ Networks.
Through its exit from Hyundai Autoever in September, Affirma Capital made an internal rate of return (IRR) of 12%. It invested 69 billion won in Hyundai Autoever in 2015 and listed the shares in 2019.
Affirma Capital invested in Samyang Packaging in December 2014 and listed shares in 2017. The PE firm disposed of some of its shareholding in the company in September and generated an IRR of 16%.
In June, Affirma Capital exited Daelim Motorcycle after A2 Partners and Rhinos Asset Management decided to take over the company. In the following month, the PE firm offloaded Daelim Motor shares to Daelim Industrial. It has generated a money multiple of approximately 1.5 times through the Daelim Motor investment, which was the last portfolio company in the Korean unit of Affirma Capital’s first fund.
Affirma Capital partially exited AJ Networks in July, reducing its shareholding from 11% to 6%.
Meanwhile, the company acquired a minority stake in South Korea’s largest media commerce firm APR through its fourth fund in August. It also made several bolt-on investments, including stakes in Sunwoo MT and Sung Gyung Food this year.
Affirma Capital has been spun out of Standard Chartered Bank after a complex three-year process involving over 50 investments across six regions. The firm not only uses each region’s individual funds for investment, backed by local institutional investors, but also capitalizes on a global pool of capital by using its Global Fund series, formed mainly for principal investments. (Reporting by Hee-yeon Han)