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, complicating exits for the funds that own them.
- • Sale negotiations for MNC Solution with Korea Investment Partners collapsed in August as the exclusive negotiation period ended, with the IB industry citing the stock price decline as the main valuation obstacle.
- • Total recoveries from MNC Solution are estimated at 390.1 billion won, and with remaining shares valued at roughly 609.1 billion won, the consortium's total is above its 453 billion won acquisition cost.
- • Hana Tour (down 41.54% YTD, 48.6% below IMM PE's entry price) and Solus Advanced Materials (down 17.12% YTD, 72.0% below adjusted entry price) show similar pressure, tying exits to National Pension Service returns.
- • Bain Capital's Classys stock fell 53.12% YTD but remains 50.3% above its acquisition price, though its 950 billion won in stock-collateralized borrowings may need repayment before any sale.
Summary
Share prices of listed companies controlled by private equity funds have fallen by as much as 77% this year, creating an unexpected obstacle to capital recovery, according to a report in MoneyToday (머니투데이). Because a listed company's share price serves as the benchmark for control transaction pricing, sale negotiations are repeatedly failing, and PEFs that have delayed exits face pressure from limited partners such as the National Pension Service if fund returns weaken. Some funds are accelerating capital recovery through share sales and dividends.
The clearest case is MNC Solution, a defense parts maker whose share price stood at 18,110 won on November 9, down 77.29% from the start of the year after a 200% bonus issue in June. The Socius and Well2i Investment consortium, the largest shareholder, acquired Motrol (MNC Solution's predecessor) from Doosan for about 453 billion won in 2021. It has since sold Motrol's civilian division to Doosan Bobcat for 242.1 billion won, recovered 78 billion won through share sales during the listing, and received roughly 70 billion won in dividends from 2022 through early 2026, bringing estimated total recoveries to 390.1 billion won. Adding remaining share value, the total reaches about 609.1 billion won. Sale talks with Korea Investment Partners collapsed in August when the exclusive negotiation period expired. The share price is 36.3% below the August 11 level of 16,960 won, when the company disclosed the end of those talks. An executive at a major PEF noted that for listed firms the stock price, rather than EBITDA-based financials, is the key valuation variable.
IMM Private Equity's position in Hana Tour illustrates the pension linkage. IMM PE bought shares at 55,500 won in the 2020 rights offering and invested about 146.4 billion won in total, including the 2022 rights offering. The stock closed at 28,500 won on November 9, down 41.54% year-to-date and 48.6% below the entry price. IMM PE began efforts to sell in 2024 but disclosed in May that it would not proceed, after its contract with Citi Global Markets Securities as selling advisor ended. Harmony No. 1, the largest shareholder with 17.28% as of June, is ultimately controlled by IMM's fourth blind pool fund, IMM Rose Gold 4, in which the National Pension Service is a limited partner. Solus Advanced Materials, acquired by Sky Lake Equity Partners in 2020, fell 17.12% this year to 6,050 won, which is 72.0% below its adjusted initial acquisition price of 21,576 won.
Bain Capital's position in Classys is comparatively stronger. Bain acquired a 60.84% stake for about 670 billion won in 2022 at 17,000 won per share. The stock fell 53.12% this year to 25,550 won on November 9 but remains 50.3% above the acquisition price. Bain has recovered about 550 billion won through two share sales last year and this year, through refinancing and dividends, and holds directly owned shares valued at about 768.4 billion won. However, it increased stock-collateralized borrowings to 950 billion won in September last year, which may need to be addressed in any future sale.
IB industry sources say conditions for forming buyout funds have also worsened. The National Pension Service, the country's largest institutional investor, halted new investments after last year's Homeplus incident, and major pensions have become more conservative toward project-type funds. Recovery in the share prices of PEF-acquired companies is therefore expected to be a key factor for both capital recovery and the formation of next funds. A source at a major PEF said that even funds without near-term exit plans cannot avoid the impact, since falling share prices reduce fund returns.
The clearest case is MNC Solution, a defense parts maker whose share price stood at 18,110 won on November 9, down 77.29% from the start of the year after a 200% bonus issue in June. The Socius and Well2i Investment consortium, the largest shareholder, acquired Motrol (MNC Solution's predecessor) from Doosan for about 453 billion won in 2021. It has since sold Motrol's civilian division to Doosan Bobcat for 242.1 billion won, recovered 78 billion won through share sales during the listing, and received roughly 70 billion won in dividends from 2022 through early 2026, bringing estimated total recoveries to 390.1 billion won. Adding remaining share value, the total reaches about 609.1 billion won. Sale talks with Korea Investment Partners collapsed in August when the exclusive negotiation period expired. The share price is 36.3% below the August 11 level of 16,960 won, when the company disclosed the end of those talks. An executive at a major PEF noted that for listed firms the stock price, rather than EBITDA-based financials, is the key valuation variable.
IMM Private Equity's position in Hana Tour illustrates the pension linkage. IMM PE bought shares at 55,500 won in the 2020 rights offering and invested about 146.4 billion won in total, including the 2022 rights offering. The stock closed at 28,500 won on November 9, down 41.54% year-to-date and 48.6% below the entry price. IMM PE began efforts to sell in 2024 but disclosed in May that it would not proceed, after its contract with Citi Global Markets Securities as selling advisor ended. Harmony No. 1, the largest shareholder with 17.28% as of June, is ultimately controlled by IMM's fourth blind pool fund, IMM Rose Gold 4, in which the National Pension Service is a limited partner. Solus Advanced Materials, acquired by Sky Lake Equity Partners in 2020, fell 17.12% this year to 6,050 won, which is 72.0% below its adjusted initial acquisition price of 21,576 won.
Bain Capital's position in Classys is comparatively stronger. Bain acquired a 60.84% stake for about 670 billion won in 2022 at 17,000 won per share. The stock fell 53.12% this year to 25,550 won on November 9 but remains 50.3% above the acquisition price. Bain has recovered about 550 billion won through two share sales last year and this year, through refinancing and dividends, and holds directly owned shares valued at about 768.4 billion won. However, it increased stock-collateralized borrowings to 950 billion won in September last year, which may need to be addressed in any future sale.
IB industry sources say conditions for forming buyout funds have also worsened. The National Pension Service, the country's largest institutional investor, halted new investments after last year's Homeplus incident, and major pensions have become more conservative toward project-type funds. Recovery in the share prices of PEF-acquired companies is therefore expected to be a key factor for both capital recovery and the formation of next funds. A source at a major PEF said that even funds without near-term exit plans cannot avoid the impact, since falling share prices reduce fund returns.
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