United Asset Management Company (UAMCO) plans to create a blind-pool fund in the second half of this year to secure money for a growing number of companies on the verge of restructuring.
UAMCO is running a marketing campaign for limited partners with some financial firms already pledging to commit to the 200 billion won ($166 million) blind-pool fund, according to sources on June 11. The size of the fund is likely to increase based on the funding results.
UAMCO is also making major changes to its investment division. It has reorganized its corporate restructuring (CR) investment division and CR management division into CR1 division and CR2 division. Previously, the CR investment division was responsible for new investments while the CR management division managed existing portfolio companies. The restructuring will allow the two new divisions to direct all processes ranging from investment and management to exit.
The CR1 division led by Kim Doo-il is responsible for active investments. A 100 billion won corporate restructuring fund, which was created jointly with Keystone Private Equity, has spent almost half its capital in less than one year since its launch. The fund has invested 7 billion won in Woori Industry, 13 billion won in Staco and 27.7 billion won in TCT. The fund plans to spend the remaining capital in the near term.
The corporate restructuring fund has recently acquired POSCO Plantec for 60 billion won. The company finished its workout program on June 10.
The CR2 division led by Kim Won-ki is focusing on managing and selling portfolio companies and launching a new blind-pool fund. The division successfully sold South Korean industrial paper Seha in the first half of this year, paving the way for the latest fundraising.
The launch of the new blind-pool fund will likely accelerate its investment in distressed companies that are on the verge of restructuring, highlighting UAMCO’s growing role in the corporate restructuring space. (Reporting by Se-hun Jo)