IMM Private Equity, a major player in South Korea’s PE space, has raised 700 billion won (about $510 million) in the first close of its fifth fund in the RoseGold series, according to a Private Equity International (PEI) report.
IMM Private Equity seeks to raise about $2.1 billion for IMM RoseGold V, which will continue to invest in conglomerates and mid-cap companies in the sectors of consumers, retails, industrials, TMT, and financial services.
The first close of RoseGold V comes about two years after IMM raised $1.8 billion for the fourth flagship fund. The latest fund, the largest in the firm’s history, expects to hold a final close in Q4 2023.
RoseGold IV has invested in businesses from various industries, including Shinhan Financial Group, industrial gas producer Linde Korea, HanaTour, Kolmar Korea’s pharmaceutical company, online pet retailer Pet Friends, Hanssem, and Bear Robotics.
The firm raised $1.2 billion for the third flagship fund in 2016 and $657 million for the second fund in 2012. Early this year, IMM’s subsidiary, IMM Credit & Solutions, raised $105 million for its solution-focused fund, which aims to invest in assets with long-term investment horizons.
The Seoul-based PE firm’s limited partners include the National Pension Services of South Korea, which committed 400 billion won to RoseGold IV.
In a 2019 interview, partner and chief investment officer Hae-Joon Joseph Lee told DealStreetAsia that the South Korean market was still attractive as the country saw around $25 billion worth of deals in a year.
The PE firm said its investment strategy is three-pronged: proprietary deal sourcing, focus on mid- to large-cap companies, and active management of portfolio companies.
“IMM PE cooperates with the management teams of the portfolio companies to bring about positive changes such as revenue growth, employment increase, cost optimization, efficient supply chain management, overseas expansion, and tailored incentive programs,” the firm says on its website.
The firm said it currently manages 31 funds with assets under management of $6.7 billion. It also has 21 companies in its current portfolio.
Since South Korea reopened to private equity in 2005, the market has demonstrated robust growth as measured by total investment and returns, according to a McKinsey report.
In August, South Korea’s SK On, energy group SK Innovation Co’s battery unit, raised about $1.51 billion from PE firms.