Rohatyn's Korea team spins out

The team is led by Gordon Cho, who joined TRG through its acquisition of Citi Venture Capital International (CVCI) in 2013 and established the firm’s Korea office three years later. Elevation will continue the strategy of taking significant minority stakes or control positions in local middle market companies, according to market sources. Elevation declined to comment.

The spin-out comes a month after TRG exited fried chicken restaurant franchisor BHC Group, its sole investment in Korea. BHC’s founder took out the private equity firm in a deal reportedly worth around KRW600 billion ($525 million). There was some third-party equity funding, while NH Investment & Securities and MBK Partners’ credit unit covered the senior debt and mezzanine tranches, respectively.

The initial investment in BHC was made in 2013 by CVCI, which paid approximately $100 million for a majority stake. TRG helped the company expand – through organic growth and bolt-on acquisitions – from 730 restaurants to more than 2,100 across four separate brands. As of 2017, it ranked second in the local fried chicken quick service restaurant (QSR) market by revenue and store numbers, and first by profitability. EBITDA increased more than fivefold during the holding period.

TRG is an emerging markets investor with a presence in 14 cities. Its Asia footprint includes offices in Singapore, Rotorua in New Zealand, Mumbai, New Delhi, and Hanoi. Prior to acquiring the CVCI business, the firm bought Hong Kong-headquartered real estate investor Arch Capital and Singapore-based infrastructure specialist CapAsia. More recently, it assumed control of GMO Renewable Resources – thereby entering New Zealand – and J.P. Morgan’s Asia infrastructure platform.

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• Topics
• North Asia
• GPs
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• South Korea
• The Rohatyn Group
• Elevation Equity Partners