MBK targets $2.25b for fund III

MBK Partners III will follow a similar strategy to its predecessor, focusing on control transactions in North Asia. The Seoul-based GP, which was set up by Michael Kim, former president of Carlyle Asia, raised $1.6 billion for its second fund, reaching a final close in 2009. The vehicle has made investments in South Korea, China and Taiwan. MBK currently has $4.2 billion in assets under management.

Most recently, the private equity firm agreed to pay KRW1.2 trillion ($1.1 billion) for a 31% stake in Woongjin Coway, the water purifier business of South Korean conglomerate Woongjin Holdings. It was the joint largest private equity transaction in South Korea so far this year. MBK earlier lost out to strategic investor Lotte Shopping on the $1.1 billion privatization of electronics retailer Hi-Mart.

MBK secured one exit in 2012, selling its majority stake in Chinese pharmaceuticals firm Luye Pharma to CDH Investments, CITIC Private Equity and New Horizon Capital. The holding reportedly sold at a substantial premium to its market value at the time, which was $140 million.

Another exit is still pending. MBK agreed to sell Taiwan cable television business CNS to Want Want China, a Chinese snack food conglomerate, for $2.4 billion in early 2011. However, the deal has been held up by Taiwan's regulators. MBK purchased CNS in October 2006 for $1.6 billion.

Two pan-Asian funds have closed in recent months, with Bain Capital and PAG raising $2.3 billion and $2.4 billion, respectively. KKR reached the halfway point on its $6 billion second fund in June, while TPG and Carlyle are said to be seeking $4 billion and $3.5 billion. RRJ Capital is targeting up to $5 billion, nearly twice the size of its previous fund.

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• Topics
• Fundraising
• North Asia
• Buyout
• Fundraising
• Asia
• South Korea
• MBK Partners