Glenwood Private Equity (Glenwood PE) is nearing a close of its second blind-pool fund at 800 billion won ($738 million) after winning private equity mandates from major South Korean institutional investors.
The Seoul-based firm launched fundraising earlier this year, after closing its first fund at 453.7 billion won in 2018. It made a good start by securing a 150 billion won commitment from the 785 trillion won National Pension Service (NPS) this summer.
With NPS as its anchor investor, the fund received backing from other major investors, bringing Glenwood PE close to the 800 billion won fundraising target. New investors Yellow Umbrella and the Korean Federation of Community Credit Cooperatives recently committed 30 billion won and 70 billion won respectively to the fund. Korea Scientists and Engineers Mutual-aid Association also made a 25 billion won commitment in October.
A strong investment performance in its previous vehicles has also helped the firm gain trust from investors, industry watchers said. Deals involving rental services company SK Magic, formerly known as Tongyang Magic, and Halla Cement, both of which were done on a deal-by-deal basis, recorded annualized internal rates of return of 35% and 14% respectively.
The second blind-pool fund will follow the same strategy as its predecessor, focusing on carve-outs in which Glenwood PE acquires non-core divisions or subsidiaries of large companies to unlock the value.
The first fund has already deployed about 80% of its committed capital. Its portfolio companies included PI Advanced Materials, formerly known as SKC Kolon PI, and Hankuk Glass Industries. (Reporting by Hye-ran Kim)