Reorient sells stake in Korean GP EQ Partners

EQ spun out from Korea Investment Holdings in 2010. Reorient bought a one third stake in EQ Partners two years ago from Dongah Tire & Rubber, a Korean auto parts manufacturer, for KRW4.5 billion ($4.1 million).

Reorient did a partial disposal of 15,600 common shares in EQ Partners in July last year. Now it is going to sell the remaining 58,650 common shares, according to a regulatory filing.

EQ was established in 2009. It has approximately $1.6 billion in assets under management and focuses on the infrastructure and utilities sectors in Korea.

The firm manages two corporate private equity funds, both of which appear to have been raised for single acquisitions: EQ Partners No.1 Private Equity Fund closed at KRW50 billion in December 2009 and purchased harbor loading company Korea TBT; EQ Partners No.1 Global Private Equity Fund closed at KRW400 billion in February 2011 and two months later bought Companhia Brasileira de Metalurgia e Mineracao.

In early 2012, EQ launched a corporate partnership fund worth KRW300 billion with domestic conglomerate Dongwon and Korea Development Bank. Later the same year, it raised KRW40 billion for an Asia infrastructure fund. In 2013, it raised a KRW663 million natural resources PE fund, while it closed a KRW43 billion corporate restructuring PE fund in May last year. Five months ago, the GP closed its energy infrastructure PE fund at KRW133 billion.

EQ made a loss of KRW582 million last year, compared to KRW1.38 billion in net profit in 2013.

Reorient, which has a joint venture with state-owned conglomerate China Chengtong Group, provides services including securities trading, investment and corporate finance advisory, and restructuring and asset management services to institutional and individual clients. It predominantly works with Chinese groups.

In May, a consortium led by Jack Ma, founder and executive chairman of Alibaba Group, acquired 81% of Reorient.

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