Key Takeaways
- • Premier Partners is assembling a separate 150 billion–160 billion won (approximately $112.4 million–$119.9 million) co-investment fund, for which it will serve as sole general partner, to help finance its acquisition of a controlling stake in Korea Fund Partners.
- • The overall deal is structured at roughly 580 billion won (approximately $434.5 million), combining 240 billion won from Blind Fund No. 6, 150 billion–160 billion won from the co-investment fund, and 180 billion–190 billion won of acquisition financing led solely by NH Investment & Securities.
- • The 240 billion won allocation from Blind Fund No. 6 exhausts the fund's single-investment cap of roughly 20% of committed capital, which is why a separate co-investment vehicle is needed.
- • The target stake is about 85% of Korea Fund Partners, South Korea's third-largest fund administration company, with 180 trillion won (approximately $134.8 billion) in assets under administration and a market share of roughly 17%.
- • Some institutions have convened investment committees to evaluate participation in the co-investment fund, and the final structure depends on its commitment size.
Summary
South Korea's Premier Partners is assembling a separate 150 billion–160 billion won (approximately $112.4 million–$119.9 million) co-investment fund to help finance its acquisition of a controlling stake in Korea Fund Partners, according to investment banking sources cited by the publication. Premier Partners will act as sole general partner of the vehicle, which is being structured as a project fund that brings together existing limited partners seeking additional commitments and new investors. Some institutions have convened internal investment committees and are reviewing whether to participate, according to people familiar with the matter.
The financing is a three-part structure. Premier Partners will contribute 240 billion won (approximately $179.8 million) from its 1.2 trillion won (approximately $898.9 million) Blind Fund No. 6, an amount that exactly exhausts the fund's single-investment cap of about 20% of committed capital. With little room to draw further from the blind fund, the firm plans to bolster its equity through the co-investment fund. Acquisition financing of 180 billion–190 billion won (approximately $134.8 million–$142.3 million) is expected to be led solely by NH Investment & Securities. Together, the equity and debt bring the estimated total purchase price to about 580 billion won (approximately $434.5 million). The overall funding structure will take shape once the co-investment fund's commitment size is finalized.
The target stake is about 85% of Korea Fund Partners, comprising the 65.1% held by largest shareholder PTA Equity Partners and a portion put up by second-largest shareholder Mirae Asset Consulting through tag-along rights. Mirae Asset Consulting is expected to retain part of its holding and remain the second-largest shareholder, a decision read as reflecting Korea Fund Partners' role as primary administrator for Mirae Asset Global Investments. Korea Fund Partners calculates fund net asset values, handles accounting and supports portfolio management for asset managers. Its assets under administration topped 180 trillion won last year, and clients such as Mirae Asset Global Investments and Timefolio Asset Management find switching administrators difficult, underpinning stable fee income.
Premier Partners was selected in July as preferred bidder for the controlling stake after an auction that drew more than 10 strategic and financial investors. Celltrion, SS&C Technologies and Hana Financial Group were also reported to have taken part. Premier Partners, a private equity firm whose limited partners include the National Pension Service, the Korean Teachers' Credit Union and Ardian, closed the 1.2 trillion won Blind Fund No. 6 in February. Its notable investments include Krafton, Mega Coffee and SK ie technology. The transaction highlights fund administration infrastructure as a private equity acquisition target, given its recurring revenue and high client switching costs. The co-investment LPs' decisions and the terms of the acquisition financing remain the final variables.
The financing is a three-part structure. Premier Partners will contribute 240 billion won (approximately $179.8 million) from its 1.2 trillion won (approximately $898.9 million) Blind Fund No. 6, an amount that exactly exhausts the fund's single-investment cap of about 20% of committed capital. With little room to draw further from the blind fund, the firm plans to bolster its equity through the co-investment fund. Acquisition financing of 180 billion–190 billion won (approximately $134.8 million–$142.3 million) is expected to be led solely by NH Investment & Securities. Together, the equity and debt bring the estimated total purchase price to about 580 billion won (approximately $434.5 million). The overall funding structure will take shape once the co-investment fund's commitment size is finalized.
The target stake is about 85% of Korea Fund Partners, comprising the 65.1% held by largest shareholder PTA Equity Partners and a portion put up by second-largest shareholder Mirae Asset Consulting through tag-along rights. Mirae Asset Consulting is expected to retain part of its holding and remain the second-largest shareholder, a decision read as reflecting Korea Fund Partners' role as primary administrator for Mirae Asset Global Investments. Korea Fund Partners calculates fund net asset values, handles accounting and supports portfolio management for asset managers. Its assets under administration topped 180 trillion won last year, and clients such as Mirae Asset Global Investments and Timefolio Asset Management find switching administrators difficult, underpinning stable fee income.
Premier Partners was selected in July as preferred bidder for the controlling stake after an auction that drew more than 10 strategic and financial investors. Celltrion, SS&C Technologies and Hana Financial Group were also reported to have taken part. Premier Partners, a private equity firm whose limited partners include the National Pension Service, the Korean Teachers' Credit Union and Ardian, closed the 1.2 trillion won Blind Fund No. 6 in February. Its notable investments include Krafton, Mega Coffee and SK ie technology. The transaction highlights fund administration infrastructure as a private equity acquisition target, given its recurring revenue and high client switching costs. The co-investment LPs' decisions and the terms of the acquisition financing remain the final variables.
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