이 기사는 2020년 03월 06일 08:00 thebell 에 표출된 기사입니다.

South Korea’s STIC Investments is accelerating efforts to exit investments made through its third fund, whose life is slated to end in 2022.

The Seoul-based firm is working on the sale of some of its portfolio companies in its third PE fund, STIC PE Fund III, sources familiar with the matter said Tuesday. The fund closed in February 2013 with capital commitments of about 460 billion won, and its capital was fully deployed for acquisitions of equity interests in 15 companies.

Among these companies, the firm fully exited only one, semiconductor manufacturer RFHIC Corporation. After a successful listing of the company on Kosdaq in 2017, STIC partially sold its stake of the semiconductor maker over the following years, making a full exit last year with a money multiple of 1.85 times.

The firm is currently working on the sale of Orion Technology and Daesung Eltec, both of which were invested in 2013.

STIC initially bought 15 billion won convertible notes issued by Orion Technology – which specializes in developing electronic components for large ships – and exercised its option in 2015 to convert the debt into shares, acquiring 81.05 percent ownership of the company.

Thereafter, the company went through an organizational overhaul, which was part of the PE firm’s efforts to increase the company’s value. Though partly hit by the overall slowdown in the shipbuilding industry, Orion Technology has made progress in developing technologies involving smart ship systems, which is a positive factor for the company’s future growth. STIC recently hired Deloitte Anjin to handle the sale, seeking a valuation between 40 billion won and 50 billion won.

The firm also has been sounding out possible buyers for Daesung Eltec, which develops and manufactures the car AVN (Audio, Video, Navigation) system. It acquired 55.5 percent of the company by purchasing 20 billion won stake and 17 billion won convertible notes, deploying total 37 billion won of capital.

Under STIC’s ownership, the Kosdaq-listed company – which was once at risk of being delisted due to a continuing net loss – succeeded in posting a turnaround. However, amid the slowdown in the auto industry, it has been experiencing a decline in earnings in recent periods, which could be an obstacle for the smooth exit of the PE firm from the company. The sale is also being led by Deloitte Anjin.

Other portfolio companies that the firm will likely attempt to exit include Median Diagnostics, a manufacturer of veterinary diagnostic products, and Hyundae Fitting, a producer and supplier of flanges. Investments in both companies were made more than four years ago.

Since the launch of its first PE fund, ORYX/STIC Fund I, STIC has continued to focus on domestic mid-market companies, with foreign investors accounting for a large portion of its limited partners. ORYX/STIC Fund I, after liquidation of investments in its 18 portfolio companies, recorded an internal rate of return, net of fees, of 22 percent.

(By reporter Kim Hye-ran)