Anchor raises $1.6b for Korea, North Asia
Anchor Equity Partners has closed its fourth Korea and North Asia-focused fund with $1.6 billion in commitments after approximately five months in the market.
AVCJ learned of the size and timing of the fundraise – the vehicle launched in April with a target of $1.5 billion and closed towards the end of September – from multiple sources close to the situation. Anchor did not respond to requests for comment.
The firm was established in 2012 by three senior members from Goldman Sachs' principal investment team in Korea. A debut vehicle of $500 million closed the following year. Anchor went on to raise $850 million for its second fund in 2015 and $1.12 billion for its third in 2019.
According to the firm’s website, 26 investments and 91 bolt-on acquisitions have been completed to date. The strategy straddles minority and majority deals, ranging from industry consolidation opportunities to growth capital investments.
Anchor has been one of the most active investors in the Kakao Corporation ecosystem as the domestic technology behemoth has brought external capital into its subsidiaries. It backed mobile content platform Kakao Page in 2016 and music and entertainment division Kakao M in 2020, and then saw the two entities merge earlier this year.
A minority position in KakaoBank acquired last November for KRW250 billion ($226 million) is now worth approximately KRW595 billion following the company’s IPO in April. Most recently, Anchor committed JPY60 billion to Kakao’s Japan unit, which is best known for distributing manga content.
The private equity firm’s Korea technology exposure also includes Naver-owned Line Corporation’s gaming business and e-commerce platform Tmon, a joint investment with KKR. The company raised KRW305 billion from other third-party investors in February, saying it would soon initiate an IPO.
In recent years, Anchor has branched into China, backing the likes of digital marketing platform Cue Holdings, car parking management business Sunsea Parking, and mother-and-baby products specialist Haipaike.
Fund IV is one of the largest raised by a Korea-focused manager, after Hahn & Company and IMM Private Equity secured $3.2 billion and $1.8 billion in their most recent vintages. As for GPs with a North Asia mandate, the closest comparative is MBK Partners. The firm is currently deploying its fifth flagship vehicle of $6.5 billion.
Mercury Capital Advisors served as placement agent for Anchor Equity Partners Fund I.
More on North Asia
Latest News
Asian GPs slow implementation of ESG policies - survey
Asia-based private equity firms are assigning more dedicated resources to environment, social, and governance (ESG) programmes, but policy changes have slowed in the past 12 months, in part due to concerns raised internally and by LPs, according to a...
Singapore fintech start-up LXA gets $10m seed round
New Enterprise Associates (NEA) has led a USD 10m seed round for Singapore’s LXA, a financial technology start-up launched by a former Asia senior executive at The Blackstone Group.
India's InCred announces $60m round, claims unicorn status
Indian non-bank lender InCred Financial Services said it has received INR 5bn (USD 60m) at a valuation of at least USD 1bn from unnamed investors including “a global private equity fund.”
Insight leads $50m round for Australia's Roller
Insight Partners has led a USD 50m round for Australia’s Roller, a venue management software provider specializing in family fun parks.