SG Private Equity (SG PE) has almost completed the fundraising for its new private equity fund after joining with Korea Investment Private Equity (KI PE), industry sources said on Thursday (November 26).
The consortium of KI PE and SG PE was among six managers that received PE mandates from the Korean Federation of Community Credit Cooperatives (KFCC) on November 25.
“We have raised the minimum fund size of 200 billion won ($180 million), thanks to the PE mandate from the KFCC,” said an official at SG PE.
SG PE and KI PE created a 200–300 billion won restructuring fund this year. They were awarded a mandate by Korea Growth Investment Corp (K-Growth) in July, reportedly receiving more than 90 billion won, the largest amount for three selected managers.
KFCC is said to have chosen the consortium because of SG PE’s expertise in restructuring investment and KI PE’s strong deal sourcing capabilities. SG PE, specializing in restructuring investment, generated an internal rate of return (IRR) of 21.5% when liquidating its blind-pool fund sponsored by the Growth Ladder Fund in May.
SG PE completed fundraising of its 500 billion won blind-pool fund as it received mandates from a number of pension funds and mutual aid associations last year, including Korean Teachers’ Credit Union, National Pension Service, Yellow Umbrella, Korea Scientists and Engineers Mutual-Aid Association, Government Employees Pension System and Public Officials Benefit Association.
Meanwhile, KI PE has enhanced its competitiveness since it became an affiliate of Korea Investment Group in March 2017. The company has added nearly 10 employees over the last 12 months and generated an IRR of almost 28% with its exit from information technology services company Dreamline. (Reporting by Se-hun Jo)