South Korea’s Hahn & Co raises $3.4bn for new buyout fund

Jul 12, 2024 | News | 0 comments

Hahn & Co, a South Korean private equity firm founded by former Morgan Stanley banker Scott Sang-Won Hahn, has raised $3.4bn for a new buyout fund, making it the largest single-country focused vehicle in Asia this year, according to a report by Bloomberg.

The report cite unnamed sources familiar with the matter as revealing that the fundraising effort includes a $140m co-investment with the fund attracting significant interest from a diverse set of investors. Asian investors contributed 35% of the total capital, while investors from the US and Canada accounted for 30%, and those from the Middle East contributed 20%.

The fund surpassed its $3.2bn target and outstripped the $2.8bn raised by Carlyle Group for a Japan-focused vehicle earlier this year. This close comes at a time when other firms like PAG and Carlyle have struggled to meet fundraising expectations for larger Asia funds.

Get the week’s top news delivered directly to your inbox – Sign up for our newsletter
Sign up

More than 93% of investors from Hahn & Co’s previous fund, each with commitments exceeding $100m, have reinvested in the new fund with increased amounts.

Hahn & Co is known for acquiring controlling stakes in subsidiaries of Korea’s family conglomerates and boasts one of the highest distributions to paid-in capital among its Asian peers. The firm’s previous $2.7bn fund from 2019 has already returned 30% of its capital.

The company’s first two funds meanwhile, have delivered net returns between 20% and 25%, while the third fund has generated an impressive 31%, according to the Bloomberg’s source.

Source: Private Equity Wire

Can’t stop reading? Read more