South Korea’s private equity (PE) firm IMM Private Equity has finished raising funds for its 2 trillion won ($1.66 billion) blind-pool fund from domestic limited partners. The PE firm is expected to continue its fundraising efforts in overseas markets.
IMM PE has been selected as a private equity manager of the Korean Federation of Community Credit Cooperatives (KFCC)’s large-cap fund category, according to sources on July 14. The PE firm is likely to receive a letter of commitment soon.
IMM PE has been raising money for its RoseGold IV fund since 2018. The fund’s target size is 2.2 trillion won, of which 1.85 trillion won has been raised so far. With the mandate from the KFCC, the fund is expected to secure 1.9 trillion won which could translate into 86% of its target size.
At the end of 2018, IMM PE was picked as a large-cap fund manager by the country’s largest pension scheme, National Pension Service (NPS). The firm was mandated to manage 400 billion won from the NPS. Shortly after that, the PE firm was successful in raising money from Teachers’ Pension, a South Korean pension scheme for private school educators. It also was selected as a PE manager by the South Korean Government Employees Pension Service.
IMM PE has been raising money for the blind-pool fund while making new investments through the fund. IMM PE participated in the rights offering worth 750 billion won by Shinhan Financial Holdings in February 2019 through its RoseGold IV. The PE firm invested its committed capital of the RoseGold IV quickly, with the firm taking over AirFirst, formerly Linde Korea, for 1.3 trillion won in March 2019. The 129 billion won bet on Hana Tour was the fund’s latest investment.
IMM PE will wrap up its fundraising for the RoseGold IV from domestic major pension funds and mutual aid associations and receive additional funding from foreign investors. The PE firm is reportedly allowed to raise capital for the fund by February 2021.
Its 1.25 trillion won predecessor fund, RoseGold III, raised approximately 200 billion won from foreign investors, including Malaysia’s Employees’ Provident Fund and Pavilion Capital, a subsidiary of Temasek Holdings. IMM PE has planned to double the proportion of foreign limited partners of RoseGold IV compared to its predecessor fund. (Reporting by Ar-rum Rho)