이 기사는 2019년 12월 23일 08:00 thebell 에 표출된 기사입니다.

This year marks South Korea’s homegrown private equity (PE) firm STIC Investments’ 20th anniversary. The firm had an outstanding year of achievements in all three areas of the private equity business: exits, investments, and fundraising.

STIC Investments succeeded in creating a trillion-won-size blind-pool fund, for the first time in the firm’s history. The firm raised 1.21 trillion won for the initial closing for its Special Situation Fund (SSF). Thus far, only three other PE firms have succeeded in launching a trillion-won-size blind-pool fund – MBK Partners, Hahn & Company and IMM Private Equity.

SSF II has raised money from South Korea’s major institutional investors including National Pension Service (NPS), Korean Teachers' Mutual Fund, Korea Post, and Teachers’ Pension. NPS has invested 400 billion won and Korean Teachers' Mutual Fund put 150 billion in the fund. STIC Investments is attracting additional institutional investors at home and abroad to close the fund at around 1.5 trillion won next year.

Special Situation Funds invest in companies in a special situation, like a succession situation or in a situation of underperformance, balance sheet distress, untapped development potential or fundamental transition. As STIC Investments’ SSF I successfully raised 600 billion won, its establishment of SSF II was also smoothly done. SSF I has five companies in its portfolio, including IT solutions and services company Hanwha S&C (200 billion won), Big Hit Entertainment (104 billion won), CJ Healthcare (80.1 billion won) and Hancom Lifecare.

SSF II has invested in two companies since its creation in August. The first one was South Korea’s parking operator HiParking. Humax and STIC Investments participated in a paid-in capital increase of Humax’s subsidiary Flat, and Flat acquired a 100 percent stake in HiParking for 170 billion won. STIC Investments invested 100 billion in the transaction. STIC Investments also announced last month that it puts 600 billion won in South Korean battery developer Iljin Materials’ Malaysian unit.

STIC Investments created a 317 billion won worth Pan-Asia Fourth Industrial Growth Capital Fund in May. The fund focuses on Asian and domestic businesses with high potential. STIC Investments invested 174.9 billion won in eight companies, including Indian startup Dunzo, Vietnam's Viet Uc Seafood Corporation and Chinese food service company Joyvio Group. Almost 60 percent of capital in its fund has been used up within six months of the launch. The PE firm is planning to establish a 500 million dollar (590 billion won) worth blind-pool fund in the second half of next year, which invests only in overseas assets.

The largest investment that STIC Investments has made this year is Iljin Materials’ Malaysian unit deal. The firm will fund 60 billion won in Iljn Materials Malaysia, with the money to be spent on expanding plants. The PE firm will first invest around 300 billion won by buying an electronic materials producer’s convertible bonds and will decide the timeline for the remaining amount later.

The PE firm also stepped into a new field this year. STIC Investments invested in Indian hyperlocal delivery startup Dunzo and Korea's first digital non-life insurer Carrot. STIC Investments and its spun-off venture capital (VC) arm STIC Ventures jointly invested in Dunzo. Out of a total of 10 million dollars (11.8 billion won), STIC Investments put in 8 million dollars. Despite a small amount, it is meaningful that the firm struck a deal in an emerging market.

Do Yong-hwan, the founder and chairman of STIC Investments has emphasized the importance of overseas investment for a long time. STIC Investments has built a plan to expand its presence in ASEAN market by staying nimble. The PE firm has carefully hunted for investment opportunities in the Indian market over the past two years. The PE firm also bet 15 billion won on Korea’s first online-only non-life insurance Carrot to become the second largest shareholder.

STIC Investments has played a big role as an investment partner of domestic conglomerates. The PE firm invested in Chinese food service company Joyvio Group with SK Group via Pan-Asia Fourth Industrial Growth Capital Fund. STIC Investments invested 63.1 billion won as a financial investor in a deal that SK Group acquires a 14 percent stake in Joyvio for 188 million dollars. Last year, the PE firm invested in Vietnam’s Masan Group with SK Group.

STIC Investments retrieved 302.5 billion won from Hanwha Systems, SSF I’s portfolio company, as the company went public on the nation’s main bourse Kospi last month. The PE firm is likely to cash out the remaining amount when the three-month lock-up period expires early next year. A sale process of South Korea's largest electronic medical record (EMR) provider UBcare is also underway in a public auction. A preliminary bid is expected to take place in early January next year.

Market expects STIC Investments to participate in big-ticket deals via its SSF II. Around 20 percent of the fund is structured to make its own buyout bid. One of the PE firm’s tasks for next year is to achieve high returns on mid-cap and large-cap buyouts through its SSF II.

(By reporter Kim Hye-ran)