이 기사는 2020년 02월 18일 08시00분 thebell에 표출된 기사입니다

Harim Group, a South Korean poultry processing conglomerate, has commenced a review of whether to partner with a private equity firm to invest in a fast-food franchise.

KL&Partners, which is currently working on launching a private equity fund with a sole purpose of raising capital to buy a controlling stake in Haimarrow Food Service, has completed a draft of the fund’s articles of association, which have been delivered to Harim on February 12, sources with knowledge on the matter said.

“[KL&Partners] recently finished drafting articles of association of the fund,” said an industry insider. “Several LPs including Korean Federation of Community Credit Cooperatives (KFCC), National Pension Service (NPS) and Shinhan GIB committed capital to the fund, while Harim has not decided whether to come on board.”

KL&Partners signed an agreement to acquire about 56 percent of Haimarrow – which owns fast-food chain Mom’s Touch – for more than 190 billion won last December. It has been in talks with Harim about the possibility of partnering on the deal over the last few weeks, an attempt which has been made more official with the private equity firm sending a draft of the fund’s contract.

Harim is expected to conduct a thorough review of the conditions and structure of the investment prior to making its decision. The company is said to have been offered to invest a larger amount of capital to the project-specific fund than other LPs.

But its symbolism as the country’s largest poultry processor, rather than how much capital it will invest, apparently matters more if it decides to take part in the investment. Some LPs of the fund reportedly committed capital, bearing in mind that they could be joined by Harim.

“For a private equity firm which should look for ways to exit its investment in the future, the partnership with a strategic investor represents the possibility of more alternative routes of exit,” another industry insider said. “Harim’s decision to commit capital could lessen the private equity firms’ burden in several ways.”

(By reporter Rho Ar-rum)