PE firm MBK Partners said to close fifth North Asia buyout fund at $6.5b

Seoul, South Korea. Photo by Emile-Victor Portenart on Unsplash.

North Asia-focused private equity firm MBK Partners has closed its fifth buyout fund at its $6.5 billion hard cap, AVCJ reported Tuesday.

Over 80 limited partners (LPs) were said to have committed to the vehicle.

The Seoul-headquartered firm launched the fund in November 2019, a regulatory filing showed, but did not disclose its target corpus. Several media reports then said the general partner was seeking to raise $6 billion for its latest fund.

DealStreetAsia has reached out to the PE firm for comment.

MBK Partners Fund V had earlier secured capital commitments from US pension funds including Illinois Teachers’ Retirement System, Virginia Retirement System, San Francisco City & Country Employees’ Retirement System, New Jersey State Investment Council, Los Angeles County Employees Retirement Association, Texas Employees Retirement System and Ohio Police & Fire Pension Fund.

Canadian investors including Canada Pension Plan Investment Board, British Columbia Investment Management Corporation and Public Sector Pension Investment Board, which have backed MBK Partners’s previous funds, have also committed capital to its latest vehicle, according to Privatecapitaljournal.com.

MBK Partners’s four predecessor funds had raised a total of $10.5 billion. These four vehicles generated IRRs between 4.5 per cent and 18.2 per cent as of June 2019, and net total value to paid-in ratios of 1.3x to 2.19x, according to an investment proposal made to the New Jersey State Investment Council.

MBK Partners focuses on the North Asia market, including China, South Korea and Japan. Established in 2005, it has invested in over 40 companies in the region and managed $22 billion of assets.

The firm’s private equity strategy spans management-led buyouts, carve-out deals, take-private transactions and add-on acquisitions. It also makes select minority investments.

MBK Partners’s special situation division invests in customised, secured lending, secondary credit investments in distressed opportunities and non-control structured equity investments.

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.

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.