Standard Chartered PE backs Korea's AJ Networks

Established in 2000, AJ Networks is described as a leading equipment rental services provider, offering office IT equipment, pallets, aerial lifts and construction equipment, in addition to cars. AJ Rent A Car reported a net income of KRW18 billion ($17.7 million) for the 2014 financial year, up from KRW17.3 billion in 2013. Sales came to KRW475.7 billion.

"AJ Networks has established leading market positions in fast-growing segments within the larger rental industry in Korea," said Taeyub Kim, managing director and head of Korea at SCPE. He added that SCPE would support the company's expansion plans at home and overseas.

According to AVCJ Research, Hana Equity Partners I - a fund managed by Hana Daetoo Investment Banking's private equity unit - paid KRW32.3 billion (then $26.8 million) for a 30.4% stake in AJ Rent A Car in 2010. The company went public in 2012 and last year Hana sold a 21.62% interest on the open market for KRW52.7 billion.

AJ Rent A Car is Korea's second-largest car rental player after KT Rental, which is owned by MBK Partners. The private equity firm carved out the business from beleaguered conglomerate Kumho Asiana in partnership with Korea Telecom in 2010. MBK has made a partial exit from the asset.

SCPE provides expansion capital and acquisition finance to companies with principal operations and management in Asia, Africa or the Middle East. It also participates in management buyouts. The unit currently has investments of $800 million in Korea.

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• Topics
• North Asia
• Expansion
• Consumer
• Standard Chartered Private Equity
• South Korea
• automobiles
• Transportation
• Growth capital