Key Takeaways
- • IMM Private Equity is targeting up to 2.04 trillion won ($396 million from overseas LPs at 540 billion won plus up to 1.5 trillion won domestically) in equity for a continuation fund holding industrial gas producer AirFirst, according to Maeil Business News Korea.
- • Coller EQT, the secondary specialist owned by EQT, has been secured as lead investor in the overseas equity fundraising, marking AirFirst as its first Asian investment since EQT completed its acquisition of Coller Capital in August.
- • If fully subscribed, the vehicle would surpass the roughly 1.9 trillion won raised for Han & Company's Ssangyong C&E continuation fund, potentially setting a South Korean record for such structures.
- • Domestic institutions including the National Pension Service, Korean Teachers' Credit Union, Korea Post, the Military Mutual Aid Association and the Korean Federation of Community Credit Cooperatives are reportedly under consideration, with some considering reinvesting in AirFirst.
Summary
IMM Private Equity is attracting strong interest from domestic and international institutional investors for a continuation fund holding AirFirst, an industrial gas producer it has owned for seven years. According to investment banking sources cited by Maeil Business News Korea, the firm plans to raise up to 540 billion won ($396 million) from overseas limited partners and as much as 1.5 trillion won from domestic investors. Meeting both targets would give the vehicle up to 2.04 trillion won in equity commitments, potentially making it the largest continuation fund of its kind in South Korea.
A continuation fund allows a private equity manager to move an asset from an existing fund into a newly established vehicle, giving existing investors an exit while bringing in new capital to support further growth. IMM PE decided on this structure after assessing AirFirst's long-term growth prospects and began approaching investors in the second half of the year.
Coller EQT has been secured as lead investor in the overseas fundraising. The report notes the deal is significant because AirFirst is effectively Coller EQT's first Asian investment since EQT completed its 4.7 trillion won acquisition of Coller Capital in August, after which the secondary specialist was rebranded Coller EQT. Coller Capital had previously been among the largest investors in Han & Company's continuation fund for cement producer Ssangyong C&E.
Domestic interest is also building. Potential participants include the National Pension Service, the Korean Teachers' Credit Union, Korea Post, the Military Mutual Aid Association and the Korean Federation of Community Credit Cooperatives, with some considering reinvesting in AirFirst through the new fund, according to industry sources. Reaching the maximum target would exceed the approximately 1.9 trillion won raised for the Ssangyong C&E vehicle, South Korea's first such continuation fund, and would mark a milestone for the country's private equity secondary market.
A continuation fund allows a private equity manager to move an asset from an existing fund into a newly established vehicle, giving existing investors an exit while bringing in new capital to support further growth. IMM PE decided on this structure after assessing AirFirst's long-term growth prospects and began approaching investors in the second half of the year.
Coller EQT has been secured as lead investor in the overseas fundraising. The report notes the deal is significant because AirFirst is effectively Coller EQT's first Asian investment since EQT completed its 4.7 trillion won acquisition of Coller Capital in August, after which the secondary specialist was rebranded Coller EQT. Coller Capital had previously been among the largest investors in Han & Company's continuation fund for cement producer Ssangyong C&E.
Domestic interest is also building. Potential participants include the National Pension Service, the Korean Teachers' Credit Union, Korea Post, the Military Mutual Aid Association and the Korean Federation of Community Credit Cooperatives, with some considering reinvesting in AirFirst through the new fund, according to industry sources. Reaching the maximum target would exceed the approximately 1.9 trillion won raised for the Ssangyong C&E vehicle, South Korea's first such continuation fund, and would mark a milestone for the country's private equity secondary market.
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