이 기사는 2019년 12월 18일 08:00 thebell 에 표출된 기사입니다.

South Korea’s homegrown private equity firm Glenwood Private Equity has drawn much attention this year, with its investment activity taking a spotlight.

Founded six years ago by former Goldman Sachs banker Lee Sang-ho, Glenwood PE has transformed itself from an investment advisory services firm into a leading private equity firm. Despite a relatively short period of operations, Glenwood PE has proven its expertise in investments, with its buyout of home appliance company Tong Yang Magic and Lafarge Halla Cement as well as successful exits afterward. In July of last year, the firm also closed its first blind-pool fund with approximately 450 billion won ($385 million) in capital commitments.

Glenwood PE made its first investment via the fund last November when it bought two regional gas suppliers from GS Energy, the energy business arm of the country's conglomerate GS group, for about 610 billion won ($522 million), among which roughly 130 billion won ($111 million) were invested through the fund. The private equity firm has continued to work on post-merger integration through this summer. Going forward, the firm is expected to stay focused on raising the companies’ value by helping them improve management efficiency.

In a surprise move, Glenwood PE announced in September that it would acquire the entirety of Hankuk Glass Industries from French material producer Saint-Gobain for 330 billion won ($280 million), which marked the buyout firm’s second investment through its blind-pool fund.

Founded in 1957, Hankuk Glass Industries is the first glass manufacturer in the country. More commonly known as its brand HanGlas, the glass maker, together with its competitor KCC, dominates the domestic glass market characterized as an oligopoly.

Glenwood PE also distinguished itself in a competitive M&A auction. Most recently, in an auction process run for SKC Kolon PI – the world's number one polyimide film maker – the firm has been chosen as the preferred bidder by SKC and Kolon Industries, beating other major contenders including MBK Partners, KKR, Carlyle and Hahn & Company. The deal is expected to be signed within this month.

Glenwood PE successfully exited its investments in Tong Yang Magic (currently renamed SK Magic) and Halla Cement in 2016 and 2017, delivering 37 percent and 14 percent of an internal rate of return, respectively. But none of the investments through its first blind-pool fund has been exited yet, drawing close attention as to how the buyout firm will raise its portfolio companies’ value.

SKC Kolon PI – if the deal is signed – could be a new challenge for Glenwood PE since the company belongs to an electronic components sector which the buyout firm has not experienced before. Nonetheless, the success of the investment in SKC Kolon PI would place Glenwood PE in the ranks of top-tier homegrown private equity firms.

As 70 to 80 percent of the capital has been already invested, industry watchers are expecting Glenwood PE to start working on raising money for its second fund, with a focus on the fund size. At the same time, it seems necessary to hire more staff and further improve internal management for the buyout firm to leap forward. “Glenwood PE has an excellent deal sourcing capability with a strong professional network,” said an institutional investor. “With its fund size getting increased, [Glenwood PE] will need to boost its staff,” he added.

(By reporter Kim Hye-ran)