IMM Private Equity has started to create a co-investment fund to put more money in its portfolio company AirFirst, with limited partners expected to give a positive response.

AirFirst was selected as an industrial gas supplier for Samsung Electronics’ semiconductor production line at the Pyeongtaek Campus, industry sources said on Monday (November 9). IMM PE is seeking equity investors to enlarge its production facility so it can supply industrial gases to the “P3” plant, the third memory plant at the campus, which is likely to cost approximately 600 billion won ($537 million).

The PE firm plans to finance the work through loans worth 200-300 billion won and equity investments worth 300-400 billion won. Part of the equity investment will be financed through its existing blind-pool fund RoseGold 4. IMM PE will also create a co-investment fund, with the size likely to depend on how actively pension funds and mutual aid associations respond to the deal.

Major limited partners of the RoseGold funds include the National Pension Service, Korean Teachers’ Credit Union, Government Employees Pension Corporation, Teachers’ Pension and Korean Federation of Community Credit Cooperatives. The co-investment fund is likely to be created in December.

“(IMM PE) said from the beginning that there will be additional investments if (AirFirst) wins the order,” said an official at a local limited partner. “We are positively reviewing participation in the co-investment fund.”

There is a possibility AirFirst may get more work from Samsung Electronics, as the tech giant plans to build three additional production lines at the Pyeongtaek Campus.

IMM PE is currently carrying out a 900 billion-won refinancing on AirFirst. Existing debt of 700 billion won held by the holding company will be refinanced by IMM PE through a new loan and an amount of 200 billion won will be used to refinance some of the existing debt of the operations company. (Reporting by Hye-ran Kim)