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.