STIC raises $530m for Korean restructurings – Exclusive

The fund aims to capitalise on a wave of restructurings among South Korean conglomerates.

South Korean private equity firm STIC Investments has held a final close on around KRW 600 billion ($530 million; €486 million) on its STIC Special Situation Fund.

The firm started marketing the fund in May 2015 with a target of KRW 650 billion, according to PEI data. It held a first close on $503 million in April this year. The National Pension Service of Korea, the $442 billion state investment fund, is an anchor investor in the fund.

The fund will focus on acquiring shares of large-cap companies whose parent conglomerates are undergoing restructuring, STIC executive managing partner Sam Lee told Private Equity International.

“Big Korean conglomerates are facing a tough business environment and we see plenty of deal opportunities in conglomerate restructurings. We believe this trend will continue in the next year as South Korea’s low growth and low interest rate environment accelerates big corporates’ M&A activities.”

Lee added that the firm has secured around 10 deals from its previous funds totalling around $5 billion in this space.

The firm is also investing its 2013-vintage $440 million STIC Global Investment Private Equity Fund, of which 65 percent has been deployed. Lee said that the firm wants to expand its investments across Asia, sourcing deals through its Vietnam office.

Among the firm’s recent investments are medical equipment manufacturer Alpinion Medical Systems, petrochemical company Hyundai Oil Terminal, and virtual office Thinkfree.

The firm, with offices in Seoul, Busan, Taipei, Shanghai, and Ho Chi Minh, manages over $4.2 billion of assets, according to its website.