이 기사는 2022년 03월 23일 08:15 thebell 에 표출된 기사입니다.

Europe's largest private equity firm EQT Partners has agreed to buy Baring Private Equity Asia (BPEA), with attention being paid to BPEA's portfolio company Acuon Capital.

EQT has reached an agreement to acquire BPEA, a leading private markets investment firm in Asia, for 6.8 billion euros (9.2 trillion won), according to industry sources on Monday.

The Nordic firm will acquire 100% of the BPEA management company and the BPEA general partner entities which control the BPEA funds. The acquisition will see the combined business rebranded as BPEA EQT Asia and the transaction is expected to close in the fourth quarter of 2022.

EQT was founded as the private equity arm of the investment company of the Swedish Wallenberg family. The combination with BPEA will provide a step-change to EQT’s presence in Asian markets.

EQT established its Korean entity in January. It participated in ADT Caps’ pre-initial public offering placement last year, but no investment has been made yet.

BPEA currently has Acuon Capital, Shinhan Financial Group, Kyobo Life Insurance as its portfolio companies in Korea. Acuon Capital is BPEA’s only buyout investment in the country. BPEA acquired Acuon Capital and Acuon Savings Bank for around 600 billion won from J.C. Flowers in 2019.

BPEA owns Acuon Capital through its seventh fund, BPEA Fund VII, and Acuon Capital owns 100% of Acuon Savings Bank.

Considering a private equity firm normally seeks to exit its investment in 3-5 years after its buyout, Acuon Capital is highly likely to be the first buyout deal carried out by EQT in Korea. The possible deal is expected to be an opportunity for EQT to live up to its reputation as the biggest private equity fund in the Nordic region with heritage and a global mindset.

After being acquired by BPEA, Acuon Capital’s revenue exceeded a 500 billion won threshold for the first time in 2020 on a consolidated basis. Its revenue increased by 23.9% year-on-year to 493.5 billion won during the first nine months of 2021. Its operating profit increased by 68% to 129.1 billion won and net profit increased by 67.7%.

A smooth exit will help EQT secure stable carried interest. EQT will take over the right to carried interest in selected existing funds - including 25% in BPEA Fund VI and 35% in BPEA Fund VII - and will be entitled to 35% of the carried interest in all future funds, starting with BPEA Fund VIII. (Reporting by Gyoung-tae Kim)