이 기사는 2021년 12월 30일 08:08 thebell 에 표출된 기사입니다.

An increase in dealmaking in South Korea this year fueled by companies looking for new growth drivers in the post-pandemic era is driving up returns of some project-based funds, bringing their limited partners significant gains.

Glenwood Private Equity is in exclusive talks to sell a 100% stake in Hankuk Glass Industries to LX International for about 600 billion won ($505.6 million), with the deal expected to be signed in the first quarter of next year. The size of the deal represents nearly twice the Seoul-based private equity firm paid for the glass producer two years ago.

Glenwood PE bought the company from French glass manufacturer Saint-Gobain in December 2019 for 310 billion won. About two-thirds of the acquisition cost, or 200 billion won, were invested from the firm’s project fund whose anchor investor was the Korean Federation of Community Credit Cooperatives (KFCC).

Kamur Private Equity recently exited its investment in Shinhan Wallcoverings by selling the wallpaper manufacturer to KCC. The investment was made five years ago via the private equity firm’s project fund whose limited partners included the KFCC and the country’s major finance firms. The exit is expected to deliver an internal rate of return of about 20%.

Kamur PE also sold JamesTech, a producer of home appliance thermistors, in September, achieving a double-digit internal rate of return.

Orchestra Private Equity sold Majesty Golf Korea to a Smart Score-led consortium this fall in a deal valued at 300 billion won, more than three times higher than what it paid for the golf brand four years ago.

Medivate Partners’ sale of its stake in Cognate BioServices in March generated about a 25% internal rate of return for limited partners of its project fund, which were composed of the KFCC and finance firms.

Rio Invest sold a controlling stake in Signet EV to SK Inc for 293 billion won in April. The price was more than four times higher than what it paid for the electric vehicle charger maker in December 2018. The private equity firm’s investment in Signet EV was made via its project fund with the KFCC as an anchor investor.

High returns from these investments have brought limited partners, including KFCC and major finance firms, big gains this year. It is said that the KFCC earned much higher this year than last year. KDB Capital, IBK Capital and Shinhan all recorded cumulative net profits that surpassed last year's total at the end of September this year.

Record performances will lead to more investment in project-based funds by the country’s finance firms in the future, industry watchers said. (Reporting by Se-hun Jo)