Carlyle Group to invest $198m in South Korea’s KB Financial

Passersby walk in front of video monitors announcing the Carlyle Group's listing on the NASDAQ market site in New York's Times Square. Photo: Reuters

Global investment firm The Carlyle Group on Thursday announced that its latest Asia buyout fund, Carlyle Asia Partners V, has signed a memorandum of understanding (MOU) for a strategic alliance with South Korea’s KB Financial Group.

Carlyle Asia Partners V, which focuses on buyout and strategic investments in the Asia Pacific, closed at $6.55 billion in 2018.  

As part of the alliance, the buyout major will invest KRW 240 billion ($197.84 million) into the Korean firm through an exchangeable bond utilising KB Financial’s treasury shares.

Furthermore, KB Financial will work with Carlyle on the structuring and financing of Carlyle’s investments in Korea.

Through this strategic alliance, KB Financial and Carlyle will draw on the respective strengths of their domestic and global networks to collaborate on new investment opportunities both in Korea and overseas, according to a statement.

“This strategic alliance will enable KB Financial to accelerate its global growth through close cooperation with Carlyle in discovering new investment opportunities, both in Korea and abroad. Equally, we believe that the strength of our domestic network will help Carlyle as it seeks to invest more into the Korean market,” KB Financial chairman Yoon Jong-gyu said. 

“KB Financial’s leading position in Korea was a key factor in signing today’s MOU, as was the group’s stable growth, the strength of management, and deep credibility. The group has also demonstrated excellent risk management capabilities in the face of the economic downturn resulting from COVID-19. We look forward to starting this close partnership as we seek to build Carlyle’s presence in Korea,” Carlyle Asia Partners advisory team managing director John Kim said.

Carlyle has invested more than $21.5 billion of equity in the region in more than 235 investments, as of March 31, 2020.

KB Financial’s 12 subsidiaries include Kookmin Bank, the largest commercial bank in Korea.

Singapore Reporter/s

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Following vacancies can be applied for (only in Singapore).   

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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.