South Korean private equity firm BNW Investment will launch a second blind-pool fund later this month after it completes a fundraising process with Industrial Bank of Korea (IBK), sources said on Wednesday (July 8).
The two general partners started a fundraising process for the second fund after investing 70% of committed capital in their first blind-pool fund, valued at 150 billion won ($125 million), which was launched in June 2018.
State-run Korea Development Bank (KDB) and Korea Growth Investment Corp. (K-Growth) selected the consortium of BNW Investment and IBK earlier this year as one of their managers for funds dedicated to investments in the materials, parts and equipment sectors. The consortium was mandated to manage 60 billion won from KDB and K-Growth and has been raising money for the new fund over the last four months.
BNW Investment and IBK raised more than 100 billion won, which is the required minimum fund size. They are expected to successfully close the fund by the end of July and will be ready to make investments in the mergers and acquisitions market. The companies have jointly managed their first fund for more than two years, raising hopes for a successful partnership.
They invested in Soft Motions & Robotics and Cresyn through their first fund and recently completed a deal to buy new shares and convertible notes issued by Nepes Laweh. The partners also have SungEel Hitech, Nepes Ark and and Revu Corporation as portfolio companies. (Reporting by Hye-ran Kim)