이 기사는 2019년 12월 17일 08:00 thebell 에 표출된 기사입니다.

Macquarie Korea Opportunities Investment (Macquarie PE) is one of the most frequently mentioned private equity (PE) firms in the domestic mergers and acquisitions (M&A) market this year. The PE firm has shown equally solid performance in both investments and exits.

This year has been Macquarie PE’s one of the busiest year ever. The firm participated in the acquisition war of industrial gas company Linde Korea (current AirFirst) in the first half of this year and participated in a deal to acquire non-controlling stake in LG CNS in the second half.

After a tight race with Macquarie PE, Korea’s homegrown IMM Private Equity has attained Linde Group's Korean industrial gas business. Strictly speaking, it was Macquarie Asia Infrastructure Funds (MAIF) that falls under Macquarie Infrastructure and Real Assets (MIRA) that attempted to takeover Linde Korea, not Macquarie PE. However, the PE firm has deeply involved in the deal.

In the second half of the year, Macquarie PE has acquired a 35 percent stake in LG CNS, an information and communications technology solutions affiliate of LG Group, after a fierce competition with Kohlberg Kravis Roberts (KKR). LG CNS is particularly focusing on areas like smart cities, smart factories and renewable energy infrastructure, seeking to make headway into overseas markets. These are exactly the specialized areas of Macquarie PE, which is working on integrating next generation technologies – such as AI, 5G and IoT – into its portfolio companies, raising the expectation of synergy between the two parties. Two parties signed a stock purchase agreement (SPA) on December 6 and the deal is expected to close early next year.

MAIF is also set to take over Daesung Industrial Gases. Again, the deal is technically led by Macquarie PE. The firm hasn’t signed a SPA yet with the gas company’s largest shareholder MBK Partners but has conducted a due diligence for over a month. Two sides are currently negotiating the price on the gas company to sign the agreement by the mid-December.

One of the most meaningful achievements for the PE firm this year is the successful liquidation of its second fund which was launched about 10 years ago. It a rare case that a blind fund worth more than 500 billion won is liquidated with double-digit returns. The PE firm invested in six assets via the Macquarie Korea Opportunities Funds (MKOF) 2 and generated an internal rate of return (IRR) of 14.5 percent.

The PE firm acquired North East Chemicals in 2011 via this fund and sold to S-Oil for around 100 billion won seven years later. The IRR was at around 15 percent. The PE firm sold Kangnam City Gas, which the PE firm acquired from SeAH Group in 2012, to Kiturami Group in 2016 with an IRR of 20 percent.

The PE firm achieved high returns on exits. MKOF 2 sold its portfolio companies WIK Gyeonggi, WIK Joogbu, WIK Environment and Yongshin Industrial Development to a Dongbu Corporation-Ecoprime consortium and WIK Green to Affirma Capital (former Standard Chartered PE), delivering an IRR of mid-10 percent. The PE firm packaged Youngduk Wind Power and Yeong Yang Wind Power Corporation and sold to Samtan and Shinhan Alternative Investment Management. This was the MKOF 2’s last deal. The PE firm delivered an IRR of mid-10 percent on all exits.

MKOF 3, which was launched with commitments of 745 billion won in 2014, invested in six assets including ADT Caps, Korea Environment Technology and Jinju Industry. The fund has exited none of them yet. The fourth fund has been launched to raise funds required to buy ADT Caps.

Macquarie PE is currently attracting limited partners to secure 750 billion won for its MKOF 5. The amount is a bit larger than the third fund of 745 billion won. The firm is expected to use its MKOF 5 for the acquisition of LG CNS upon its first closing.

The PE firm’s one of top priorities is the diversification of its portfolio. The MOKF 2 and 3 have invested in many energy and infrastructure-related businesses so far. As the PE firm is not a fund that only invests in infrastructure assets, the market is paying attention how the fund will diversify its assets with its MOKF 5.

At the same time, the competition among PE firms in energy and infrastructure investment market is getting fiercer. Glenwood PE beat Macquarie PE to take over GS Energy’s subsidiaries Seorabeol City Gas and Haeyang City Gas (current Haeyang Energy) in a private deal.

The PE firm has expanded its territory by investing in Megabox, one of the three biggest multiplexes, and ADT Caps, a security services firm. Macquarie PE has solidified its networks with South Korean conglomerates like SK and LG Group by forming a consortium with SK Telecom to acquire ADT Caps and by taking over a 35 percent stake in LG CNS.

(By reporter Kim Hye-ran)