이 기사는 2021년 03월 31일 08시08분 thebell에 표출된 기사입니다

Market insiders are paying attention to the Export-Import Bank of Korea (KEXIM)'s tender process to award a 50 billion won ($44 million) private equity mandate into which the state-controlled bank has integrated environmental, social and governance (ESG) factors for the first time.

A consortium of Stonebridge Ventures and Industrial Bank of Korea, a consortium of KB Investment and Badgers Investment, Dominus Investment, E&F Private Equity, Q Capital Partners and Crescendo Equity Partners have advanced to the next round of the selection process that will choose two managers to award 25 billion won each. The shortlisted candidates will make presentations on Friday.

Badgers Investment joined a competition for a PE mandate awarded by a limited partner for the first time. The firm, formerly known as Peregrine Investment, was established in 2017 by Choi Sung-min, former Chief Executive Officer at Morgan Stanley Private Equity.

The PE firm partnered with KB Investment to make up for its weaknesses through KB Investment's track record. KB Investment was selected as a manager for a restructuring fund by Korea Growth Investment Corporation (K-Growth) together with Fine Asset Management in 2020.

KB Investment is expected to benefit from Badgers Investment’s global network in making overseas investments. KB Investment has actively invested in foreign companies through its KB Global Platform Fund created in 2019, but its activities have been sluggish after a key manager left the house.

Dominus Investment is also expected to highlight its investment track record. The PE firm invested in skateboard shoe brand Supra and clothing company Hilon Indonesia. It also invested in Micronesia Resort, a subsidiary of E-land Group, through its overseas branch.

A consortium led by Stonebridge Venture, E&F PE, Q Capital Partners and Crescendo Equity Partners won the New Deal mandates jointly awarded by Korea Development Bank (KDB) and K-Growth in February. PE firms that secured capital commitments from KDB and K-Growth are likely to have an edge over others as both mandates focus on the government’s New Deal initiative.

“Even through the amount of mandate is not large, it is meaningful that this is the first time KEXIM has integrated ESG factors into the mandate,” said an industry source. “Each firm’s key fund manager, global network and track record are expected to be one of the pillars of selecting managers.”

Final selections are expected to be made before the end of April. Each selected manager must close a fund of 100 billion won or more within six months after the selection date. (Reporting by Byung-yoon Kim)