STIC in 6.3x Korean exit

The Seoul-based private equity and secondaries fund manager netted a 6.3x cash return from its investment in touch sensor company Melfas.

Asian private equity firm STIC Investments has exited its investment in Melfas, a Korean touch sensor solution provider, through a trade sale to a corporate buyer.

The divestment generated an internal rate of return of 72 percent and a multiple of 6.3x on the deal for the firm, according to Trevor Chan, a director at STIC Investments.

In 2006, STIC invested an undisclosed sum for a minority stake in Melfas. The investment was made out of a STIC growth capital fund, which Chan declined to name.

STIC has divested its stakes in two other Korean portfolio companies since the beginning of this year. Early this month, STIC sold its stake in medical scanning company Vieworks, through an initial public offering (IPO) on the Korean stock exchange. The listing generated an IRR of 90 percent and a multiple of 6x on the investment for the firm. 

This January, STIC sold its stake in Korean biotech company Medy-Tox through an IPO, which generated an IRR of 33.2 percent and a 2x multiple.

In March, Korea’s Ministry of Knowledge Economy committed $20 million to the STIC Asia Mid-market Private Equity Fund II. The fund is targeting a final close this December on $500 million. It is aiming for a first close on $200 million by June, Chan said.

The firm closed STIC Secondaries Fund II on $386 million in October 2008. The fund acquires private equity portfolios such as growth capital, buyouts and special situations in South Korea and the rest of Asia Pacific.

Founded in 1999, STIC manages more than $1.2 billion. Its other offices are located in Busan, Hong Kong, Shanghai, Taipei, Ho Chi Minh City, Palo Alto and Dubai.