이 기사는 2019년 12월 26일 08:00 thebell 에 표출된 기사입니다.

2019 was a good year for South Korea-based Unison Capital, with strong results in fund-raising, investments and exits.

Successful exit from Gong Cha

For Unison Capital, one of the biggest achievements this year is its exit from Gong Cha.

After acquiring a 70 percent stake for 36 billion won ($31 million) in 2014, the private equity firm helped the bubble tea chain expand into the Japanese market. In 2017, Unison Capital made a bold move, further investing 35 billion won ($30 million) to acquire a controlling stake in Royal Tea Taiwan, the parent company of Gong Cha Korea.

With this bolt-on strategy, the value of Gong Cha Korea has jumped under Unison Capital’s ownership. Its 2018 revenue increased nearly 45 percent year-on-year on a consolidated basis, and its earnings before interest, taxes, depreciation and amortization (EBITDA) also doubled to 32 billion won ($27 million).

Gong Cha has been put up for sale this year and sold to U.S-based private equity firm TA Associates. TA Associates reportedly made an offer of 350 billion won ($300 million) for a 100 percent stake. Unison Capital unloaded its stake in Gong Cha for about 270 billion won ($232 million), delivering more than fourfold gain and 50 percent of an internal rate of return.

Two investments through a new fund

Earlier this year, Unison Capital launched its second blind-pool fund with commitments of 500 billion won ($430 million) that will mature in 2023. Major domestic institutions – including the National Pension Service (NPS), the Korean Teachers’ Credit Union (KTCU) and Korea Post – committed capital to the fund.

Unison Capital has chosen Medit Corp, South Korea-based 3D dental scanner maker, as its first investment through the second fund.

In October, the private equity firm signed an agreement to buy a controlling stake from Medit CEO Chang Min-ho for 320 billion won ($275 million), beating other contenders like Kohlberg Kravis Roberts, Carlyle Group and Bain Capital. After completing the transaction in the same month, Unison Capital has initiated its own value-add program called the Value Creation Plan (VCP) to increase the value of Medit.

Unison Capital also recently acquired a nearly 70 percent stake in Sappun – the number one online shoe store for women’s footwear in the country – for roughly 40 billion won ($34 million). The private equity firm plans to help the company grow expand into overseas markets.

Unison Capital has used approximately 140 billion won from its second blind-pool fund to finance these two acquisitions, investing more than 20 percent of the fund’s capital in less than a year.

Focus on growth deals

Unison has proved itself as a strong player in the mid-market space, snapping up Medit and Sappun this year. With its strong professional network built not only in Korea but also in Japan and Singapore, Unison Capital is considered as a great partner for small and mid-sized companies seeking to grow further by expanding cross geographies.

In 2020, the firm plans to make two to three investments, focusing on growth deals as it did this year. Unison Capital is also expected to speed up its exit from the remaining portfolio companies in its first blind-pool fund – including P2P Systems, more commonly known as its meeting-space company Toz, and FND Net, a health functional food company.

Unison Capital is an independent private equity firm founded in 1998. Its Seoul office is currently led by three partners - Kim Soo-min, Shin Sun-wha and Gwak Seung-woong. With its strong presence in the mid-market space, the firm has launched two blind-pool funds in South Korea so far, raising more than 800 billion won ($687 million) in aggregate.

(By reporter Choi lk-hwan)