South Korean private equity firm IMM Private Equity has held a final close on its latest buyout fund on KRW 1.25 trillion ($1.15 billion; €995 million).
IMM RoseGold PEF III, which began marketing in 2014, held a first close on KRW 485 billion in March last year.
“Most of our funding traditionally came from Korean limited partners, but this time around we have about 20 percent of the fund or roughly $200 million from international investors such as sovereign wealth funds and large pension funds,” Joseph Lee, partner and senior managing director at IMM Private Equity told Private Equity International.
Investors in the firm’s earlier funds include the National Pension Service of Korea, Hyundai Marine & Fire Insurance and Public Officials Benefit Association, according to PEI data.
The firm’s third fund will pursue the same strategy as its previous fund, targeting deals in the consumer space, food and beverage, as well as industrials.
“For PEF III a lot of our limited partners felt that they wanted to get exposure in the mid-market space in Korea – deals with an enterprise value of under $1 billion – where most of the deals in are mainly chaebol (family-owned businesses) carve-outs, mid-cap companies where founders are cashing out, or growth capital investments,” Lee said.
Its predecessor fund, the 2011-vintage IMM RoseGold PEF II, raised KRW 755.7 billion against a KRW 700 billion target, according to PEI data. The fund, fully deployed this year, has made investments in Kyobo Life Insurance, Hollys Coffee and Posco Specialty Steel.
Lee added: “Over the course of four years in Fund II we have deployed over $1.8 billion in overall transaction value, which includes equity, co-investments, debt and mezzanine financing.”
Founded in 2006, IMM Private Equity has raised over KRW 1.6 trillion across four funds and exited KRW 104 billion, according to its website.