MSPE Asia’s Scott Hahn takes on Korea

Hahn departed the US investment bank after nearly 16 years in April 2010 to set up Hahn & Co., said to maintain a focus on South Korea due to the volume of large-size private equity transactions. In terms of an investment destination, the market is also recognized for its influential local LPs, such as the National Pension Service, a sovereign wealth fund which has been supporting local general partners for years.

Hahn's plans to launch his own maiden fund first emerged in December of last year, confirmed when Hahn filed documentation to the SEC underlining his intention to raise $650 million. At the time, Hahn's new private equity vehicle was said to have received $250 million worth of commitments from Singaporean sovereign wealth fund Temasek Holdings, although the SWF declined comment on its participation.

Hahn later confirmed news of the fundraising process to AVCJ, and while he was unable to further disclose specific strategies for the raise due to legal restrictions, sources close to Hahn did tell AVCJ that the fundraise was prompted by Hahn's own desire for independence. They added that, after devoting nearly two decades to the investment bank and having successfully raised $1.5 billion for MSPE Asia III in 2007 - which he viewed as an accomplishment - Hahn was prepared for the next challenge.

Sources aver that South Korea is one of the more compelling investment markets in Asia, alongside China and Japan, because of its opportunities for cross-border transactions and an increase in M&A flows.

In 2000, the year MSPE Asia opened its Seoul bureau, the bank appointed Hahn to lead its local Korean team and gave him the breadth to complete a number of notable investments, including the 2008 acquisition of Landmark Investment Trust Company, which MSPE Asia sold to ING. The PE outfit also invested in Ssangyong Corporation, a trading company; Hyundai Rotem, a joint venture of the Hyundai Motor Group; and Jeonju Paper, a manufacturer of newsprint and specialized paper products.

Following Hahn's departure from the firm, another Morgan Staley investment veteran, Executive Director Pratish Patel, decided to join Hahn, playing an integral role in the Korean fund's formation. According to an SEC filing, Patel is currently based in New Jersey.

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• Topics
• Fundraising
• North Asia
• Morgan Stanley Private Equity Asia