이 기사는 2020년 05월 18일 08:00 thebell 에 표출된 기사입니다.

MBK Partners deployed the largest amount of capital in its history during last year, with its focus on buyout and special situation opportunities across North Asia.

MBK Partners made 12 investments in 2019, deploying total $2.3 billion, according to its latest annual letter to investors. For the past three years, it deployed $1.2 billion in China, $1.5 billion in Japan and $1.9 billion in Korea, respectively, highlighting the firm’s aggressive investment stance.

The Seoul-based firm invested $1.6 billion in buyout acquisitions last year. It bought Korea’s Lotte Card and Godiva Japan, while acquiring eHi, Siyanli and Wendu in China. In addition, it made add-on investments in Japan’s Accordia Golf and Korea’s Golfzon.

The firm also accelerated investment in special situation opportunities, capitalizing on heightened market uncertainty caused by macro risk factors such as the U.S.-China trade war, Korea-Japan diplomatic spats and the Hong Kong protests. Its first special situations fund, Special Situations I, invested more than $400 million in five companies including BHC in Korea, Accordia Next Golf in Japan, OCI in Hong Kong and CGI Holdings and Modern Land in China.

Special Situations I was launched only a couple of years ago, but already deployed more than 80 percent of commitments. MBK Partners plans to start raising capital for its second special situations fund later this year.

The firm made exits from seven companies last year, distributing total $3.5 billion to its investors. Some impressive exits included the Coway, Orange Life and Daesung Industrial Gases deals in Korea.

MBK Partners sold Coway to Woongjin Group at an equity multiple of 3.3 times and internal rate of returns (IRR) of 26 percent. It also sold Orange Life to Shinhan Financial Holdings, which generated a multiple of 2.7 times and IRR of 27 percent. The sale of Daesung Industrial Gases, which completed earlier this year, generated a multiple of 2.1 times and IRR of 32 percent.

The firm also made partial exits from Daesung Industrial Gases – prior to a full exit – and HKBN through recapitalization transactions. It also made interest distributions from OCI and Xeno, the firm said.

“In the past 15 years, our realized proceeds total $12.1 billion (including LP co-investment proceeds), the largest amount among Asian GPs,” MBK Partners noted. The firm has three active buyout funds and one special situations fund.

In aggregate, the firm’s funds generated an equity multiple of 1.9 times and IRR of 18 percent at the end of 2019 on an absolute basis. Especially, Special Situations Fund I showed strong performance, with IRR of 86.2 percent. Meanwhile, Fund IV posted IRR of 33.8 percent, the highest among the firm’s buyout funds, followed by Fund II with IRR of 26.2 percent and Fund III with IRR of 21.1 percent.

(By reporter Han Hee-yeon)