Korea’s IMM PE collects $800m so far for latest fund – exclusive

The mid-market firm is raising its largest fund yet and expects more capital commitments from US LPs.

Korea-focused manager IMM Private Equity has raised more than half the target of its latest vehicle, Private Equity International has learned.

The Seoul-headquartered firm is seeking around $1.5 billion for IMM RoseGold IV, according to two sources familiar with the matter. The firm began raising capital from Korean investors in November and has so far received over $800 million of capital commitments, according to one of the sources.

The fund’s target is around 25 percent larger than its predecessor, which raised 1.25 trillion won ($1.15 billion; €995 million) in 2016. The firm will begin raising capital from non-Korean investors next month, aiming to raise about $500 million from international LPs.

The 2015-vintage Fund III received about $1 billion of capital commitments from Korean investors and approximately $200 million from international LPs, one of the sources said.

A first close is expected this summer and a final close by year-end.

Investors in IMM PE’s previous funds include Korea’s National Pension ServiceHyundai Marine & Fire InsuranceIBK Insurance and Public Officials Benefit Association.

Fund IV will also have the same investment strategy as the firm’s previous funds, backing mid-cap companies in Korea mainly in the consumer-related and industrials space.

The firm has deployed over $1 billion from Fund III and has sourced additional $600 million of LP co-investments, one of the sources said. It has made 10 investments from the fund including car sharing company SOCAR, online fashion company W Concept and shipbuilding company Hyundai Samho Heavy Industries, according to its website.

IMM PE declined to comment on fundraising.

Korea-focused managers raised a total of $4.2 billion across buyouts, growth equity, venture capital and distressed from 2014 to 2018, according to PEI data. Among other Korea-focused firms that are on the fundraising trail are VIG Partners, which is seeking up to $800 million for its fourth fund, and Hahn & Company, which is eyeing more than $1 billion for its third fund.