Key Takeaways
- • Share prices of several Korean listed companies owned by private equity funds (PEFs) have fallen sharply in 2026, with MNC Solution down 77.29% year-to-date to 18,110 won as of November 9, undermining exit negotiations.
- • MNC Solution's sale talks with Korea Investment Partners collapsed in August as the exclusive negotiation period expired, with the consortium of Socius and Well2i Investment estimating total recoveries of 390.1 billion won against a 453 billion won acquisition price.
- • Hana Tour, held by IMM Private Equity through a fund backed by the National Pension Service, trades 48.6% below IMM PE's initial acquisition price, and IMM PE abandoned its sale effort in May.
- • Bain Capital's Classys stake remains 50.3% above its acquisition price despite a 53.12% year-to-date decline, but its stock-collateralized borrowings of 950 billion won will need to be addressed in any future sale.
- • Industry sources say share price volatility is now the central valuation variable for listed-company control deals, complicating PEF exits and the fundraising outlook for the next buyout funds.
Summary
The share prices of listed companies in which private equity funds are the largest shareholders have fallen by as much as 77% this year, according to reporting by Money Today (머니투데이), creating an unexpected obstacle to capital recovery for PEFs. Because a listed company's share price serves as the benchmark for control transaction pricing, sale negotiations are repeatedly breaking down, and PEFs that have delayed exits face mounting pressure from limited partners such as the National Pension Service if fund returns deteriorate. Some funds are accelerating capital recovery through share sales and dividends.
According to investment banking industry sources, the share price of defense parts maker MNC Solution stood at 18,110 won on November 9, down 77.29% from the start of the year after reflecting a 200% bonus issue in June. The consortium of Socius and Well2i Investment acquired Motrol, MNC Solution's predecessor, from Doosan for approximately 453 billion won in 2021. The consortium has recovered 242.1 billion won from the sale of Motrol's civilian division to Doosan Bobcat, 78 billion won through sales of existing shares during MNC Solution's listing, and roughly 70 billion won in dividends from 2022 through early 2026, for estimated total recoveries of 390.1 billion won. Including the value of remaining shares, the figure reaches approximately 609.1 billion won. Sale talks with Korea Investment Partners in August nonetheless collapsed when the exclusive negotiation period ended. The share price is 36.3% below the 16,960 won level on August 11, when MNC Solution disclosed the end of those negotiations. A senior executive at a major PEF noted that for listed firms, the stock price rather than EBITDA-based financials is the key variable in control sales.
Hana Tour's share price fell 41.54% year-to-date to 28,500 won on November 9. IMM Private Equity acquired shares in the company's 2020 rights offering at 55,500 won per share and invested approximately 146.4 billion won in total, including its participation in the 2022 rights offering. The current price is 48.6% below that entry level. IMM PE began efforts to sell Hana Tour in 2024 but disclosed in May that it would not proceed, after its advisor Citi Global Markets Securities's contract ended. The largest shareholder, Harmony No. 1 Limited Company, held 17.28% as of the end of June, according to the semi-annual report. Its sole investor is Harmony No. 2, whose sole investor is IMM PE's fourth blind pool fund, IMM Rose Gold 4 Private Investment Limited Partnership. Because the National Pension Service is an LP in Rose Gold No. 4, the Hana Tour exit is directly linked to national pension fund returns.
Solus Advanced Materials, the foil maker formerly known as Doosan Solus, fell 17.12% year-to-date to 6,050 won on November 9. Sky Lake Equity Partners acquired control shares from Doosan Group in 2020 at 43,152 won per share, for approximately 700 billion won. Adjusted for a 100% bonus issue in 2024, the initial acquisition price is 21,576 won, and the current price is 72.0% below that level.
By contrast, Classys, the aesthetic medical device maker in which Bain Capital is the largest shareholder, fell 53.12% year-to-date to 25,550 won on November 9, yet remains 50.3% above Bain Capital's 2022 acquisition price of 17,000 won per share. Bain acquired 60.84% of the company for approximately 670 billion won. It has secured about 550 billion won through two share sales in 2025 and 2026, along with refinancing and dividends, and its remaining directly held shares are valued at approximately 768.4 billion won. However, Bain increased stock-collateralized borrowings to 950 billion won in September 2025, meaning repayment will need to be addressed in future sale processes.
Industry sources believe these dynamics are weakening conditions for forming buyout funds. The National Pension Service, the country's largest institutional investor, has halted new investments following last year's Homeplus incident, and major pension funds have adopted a more conservative stance toward project-type funds. A source at a major PEF said that even funds without immediate exit plans cannot avoid the impact, since declines in the share price of acquired companies affect fund returns. Recovery in these stock prices is therefore expected to be a key variable for capital recovery and the formation of successor funds.
According to investment banking industry sources, the share price of defense parts maker MNC Solution stood at 18,110 won on November 9, down 77.29% from the start of the year after reflecting a 200% bonus issue in June. The consortium of Socius and Well2i Investment acquired Motrol, MNC Solution's predecessor, from Doosan for approximately 453 billion won in 2021. The consortium has recovered 242.1 billion won from the sale of Motrol's civilian division to Doosan Bobcat, 78 billion won through sales of existing shares during MNC Solution's listing, and roughly 70 billion won in dividends from 2022 through early 2026, for estimated total recoveries of 390.1 billion won. Including the value of remaining shares, the figure reaches approximately 609.1 billion won. Sale talks with Korea Investment Partners in August nonetheless collapsed when the exclusive negotiation period ended. The share price is 36.3% below the 16,960 won level on August 11, when MNC Solution disclosed the end of those negotiations. A senior executive at a major PEF noted that for listed firms, the stock price rather than EBITDA-based financials is the key variable in control sales.
Hana Tour's share price fell 41.54% year-to-date to 28,500 won on November 9. IMM Private Equity acquired shares in the company's 2020 rights offering at 55,500 won per share and invested approximately 146.4 billion won in total, including its participation in the 2022 rights offering. The current price is 48.6% below that entry level. IMM PE began efforts to sell Hana Tour in 2024 but disclosed in May that it would not proceed, after its advisor Citi Global Markets Securities's contract ended. The largest shareholder, Harmony No. 1 Limited Company, held 17.28% as of the end of June, according to the semi-annual report. Its sole investor is Harmony No. 2, whose sole investor is IMM PE's fourth blind pool fund, IMM Rose Gold 4 Private Investment Limited Partnership. Because the National Pension Service is an LP in Rose Gold No. 4, the Hana Tour exit is directly linked to national pension fund returns.
Solus Advanced Materials, the foil maker formerly known as Doosan Solus, fell 17.12% year-to-date to 6,050 won on November 9. Sky Lake Equity Partners acquired control shares from Doosan Group in 2020 at 43,152 won per share, for approximately 700 billion won. Adjusted for a 100% bonus issue in 2024, the initial acquisition price is 21,576 won, and the current price is 72.0% below that level.
By contrast, Classys, the aesthetic medical device maker in which Bain Capital is the largest shareholder, fell 53.12% year-to-date to 25,550 won on November 9, yet remains 50.3% above Bain Capital's 2022 acquisition price of 17,000 won per share. Bain acquired 60.84% of the company for approximately 670 billion won. It has secured about 550 billion won through two share sales in 2025 and 2026, along with refinancing and dividends, and its remaining directly held shares are valued at approximately 768.4 billion won. However, Bain increased stock-collateralized borrowings to 950 billion won in September 2025, meaning repayment will need to be addressed in future sale processes.
Industry sources believe these dynamics are weakening conditions for forming buyout funds. The National Pension Service, the country's largest institutional investor, has halted new investments following last year's Homeplus incident, and major pension funds have adopted a more conservative stance toward project-type funds. A source at a major PEF said that even funds without immediate exit plans cannot avoid the impact, since declines in the share price of acquired companies affect fund returns. Recovery in these stock prices is therefore expected to be a key variable for capital recovery and the formation of successor funds.
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