Korea's IMM makes debut credit investment

SK Innovation, the SK Group subsidiary responsible for energy and petrochemicals, disclosed the transaction in a filing. SK Innovation, which said the sale was motivated by a desire to accumulate resources for investment in new business areas, retains 60% of the company. A source close to IMM confirmed it involved the firm’s credit platform.

SK Lubricants is said to be the global leader in lube base oils, which it produces under the Yubase brand. It distributes products to customers in more than 50 countries, chiefly original equipment manufacturers in the automotive industry. The company also owns lubricant oils brand SK Zic, which is the market leader in Korea and sells into Russia, South Asia, and Southeast Asia.

SK Lubricants posted sales of KRW2.68 trillion in the 12 months ended December 2020, down from KRW3.37 trillion the previous year. Over the same period, net income fell from KRW243.3 billion to KRW215.7 billion.

IMM Private Equity was established in 2006 and has around $5.4 billion in assets under management. The firm closed its fourth flagship Korea fund at the end of 2020 with KRW2 trillion in commitments, up from KRW1.25 trillion in the previous vintage.

It is not the first Korean private equity firm to expand into credit. Notably, MBK Partners launched its first special situations fund in 2017, eventually raising $850 million. As of year-end 2020, the vehicle had generated a 2.2x multiple and a 53.5% IRR. A second fund, targeting $1.25 billion, was launched towards the end of last year.

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• Topics
• North Asia
• Credit
• Industrials
• South Korea
• IMM Private Equity
• Chemicals
• energy
• Structured finance