Korean GP EQ Partners gets investment from Reorient Group
Hong Kong-listed financial services provider Reorient Group has bought a one third stake in Korean private equity firm EQ Partners from Dongah Tire & Rubber, a Korean auto parts manufacturer, for KRW4.5 billion ($4.1 million).
EQ, which spun out from Korea Investment Holdings in 2010, has approximately $800 million in assets under management.
According to a regulatory filing, Dongah holds 180,000 common shares in EQ. which will be acquired by Reorient and EQ management, the latter participating through a vehicle controlled by Ariel Capital Partners. Reorient's portion of the shares represents a 33.22% of the overall voting rights and common shares, and a 25% interest in the total issued share capital.
Korea Investment & Securities, a subsidiary of Korea Investment Holdings, will retain a minority stake in EQ. As part of the investment agreement, James Kim, EQ's CEO, will remain with the firm. There are currently four directors and five investment officers.
EQ 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.
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.
The company said the investment in EQ would allow it to expand its network of potential clients, investors and investees.
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