VIG Partners Closes Fourth Korea-Focused Buyout Fund at US$810m

Seoul and Hong Kong-based VIG Partners announced the final close of its fourth Korea-focused buyout fund with a total of US$810 million in commitments.

The fund, VIG Partners Fund IV, exceeded the initial target of $800 million when it was launched in 2018. The private equity firm closed its third fund in 2017 at US$600 million.

In a statement, VIG Partners said its latest fund secured commitments from international LPs, including pension funds, sovereign wealth funds, global insurance companies, fund of funds, and family offices from Asia, the Middle East, Europe, Canada, and the US.

The said fund will acquire control positions in Korean companies with enterprise value ranging from US$70 million to US$500 million. It made at first close in May last year at US$530 million.

Even before its final close, Fund IV has already made a significant investment. VIG said it recently acquired a controlling stake in Korea’s leading online and offline blended education service provider D.Share for US$140 million.

“VIG will continue to focus on the same investment strategy of control investments in companies with strong and stable growth
potential in the increasingly affluent and sophisticated domestic market,” the firm said.

VIG Partners was established in 2005 to invest in small and medium-sized enterprises in various industries, such as consumer goods, online and mobile commerce, financial services, and household appliances.

The firm is one of the first private equity firms to be established in Korea and has been a leader in the country’s active private equity market, managing approximately US$3 billion across all funds.

The firm’s current investments include lens manufacturer Samyang Optics, massage chair manufacturer Bodyfriend, PVC window manufacturer Winche, parking management service provider Hi Parking, funeral service provider Joun Life, facial masks manufacturer PNC, fabric uppers manufacturer Winplus, contact lens retailer Starvision, and fried chicken restaurants franchisor Bonchon.

Hong Kong-based MVision Private Equity Advisers Asia Limited, served as strategic fundraising adviser for Fund IV.  MVision also previously served as strategic fundraising adviser for Fund III.