AID Partners to sell stake in HMV to Japan's World Innovation Lab

According to a filing, AID Partners will sell shares in HMV's Asia portfolio - which is operated under an entity of HMV Marketing - to WiL Fund I, an investment fund managed by World Innovation Lab. Upon completion of the deal, AID Partners will still own 81.63% of the business.

The private equity firm bought HMV's operations in Hong Kong and Singapore, plus all its licenses in mainland China, Macau and Taiwan in February 2013 for an undisclosed sum.

At that time, HMV had six stores in Hong Kong and two in Singapore, plus an e-commerce business in Hong Kong. The Hong Kong businesses as a whole posted annual revenue of HK$300 million ($38 million). During its holding period, AID Partners has reduced the number of music and movie retail stores to five and opened two restaurants and a cafe under the HMV brand

The Asian business is legally separate entity from HMV in the UK, which went into administration one month before AID acquiring the Asian business.

This is not the first time an HMV affiliate in Asia has been the target of private equity investment. In 2010, Daiwa SMBC Principal exited HMV Japan to local convenience store chain operator Lawson for around $22 million. Daiwa acquired a 100% stake in the business in 2007 through a carve-out from the company's UK parent.

World Innovation Lab focuses on cross-border strategies, with a view to providing global expansion support for Japanese start-ups as well as bringing US-based companies into Japan. Part of these efforts include facilitating collaboration between start-ups and large corporations in Japan, primarily the fund's LPs. In 2014, Innovation Network Corporation of Japan committed $100 million to WiL Fund I.

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• Topics
• Greater China
• Southeast Asia
• Consumer
• Trade sale
• Hong Kong (China)
• Singapore
• Japan
• AID Partners
• World Innovation Lab (WiL)
• Exit