South Korean homegrown private equity firm (PEF) Glenwood Private Equity is setting up a second blind-pool fund aiming to raise 800 billion won ($667 million).
The size of the fund is approximately 300 billion won larger than that of the first one – “Glenwood Korea First” – which was formed in July 2018. It was the first time Glenwood had launched such a blind-pool fund with the goal of investing exclusively in Korean businesses abroad since it was established in 2013.
Through the 453.7 billion won fund, Glenwood acquired Seorabeol City Gas, an exclusive LNG gas distributor in the cities of Gyeongju and Yeongcheon in the North Gyeongsang province of Korea in 2018. It also acquired Hankuk Glass Industries, which designs, manufactures and offers a full range of glass products, in 2019. This year Glenwood also bought PI Advanced Materials (formerly SKC Kolon PI), the global No.1 producer of polyimide film for advanced industries such as display, semi-conductor and electric vehicles.
According to industry sources on June 9, Glenwood started setting up the second blind-pool fund right after submitting a proposal to the National Pension Fund (NPS) to be selected as one of its external PEF management companies. NPS plans to commit 80 billion to 200 billion won each to manage its PEF projects.
Glenwood has been shortlisted as NPS’ external management company nominees which was announced a day before. If it is finally selected as the management company after passing due diligence and presentation evaluation, its fund-raising activity for the second blind-pool fund is expected to gain momentum.
The NPS said in late March that it will invest 800 billion won in PEF projects during the first half of this year and 150 billion won in venture fund investment projects in the second half. The NPS plans to select up to five firms to manage the PEF projects by the end of this month. (Reporting by Hyeran Kim)