MBK Partners Sells 13% Stake to US Dial Capital for Approximately KRW 1.2 Trillion

Byungjoo Kim, Chairman of MBK Partners

[Asia Economy Reporter Kim Hyung-min] MBK Partners, a management-participation private equity fund (PEF) led by billionaire Michael Byungju Kim (Kim Byungju), has agreed to sell a 13% stake to U.S.-based Dial Capital, Bloomberg News reported on the 12th, citing sources. The sale amount is approximately $1 billion (about 1.19 trillion KRW).

The sale is aimed at expanding MBK Partners' regional business focused on Korea, China, and Japan, as well as broadening its global investor base, according to sources.

MBK Partners is reportedly considering expanding into real estate and growth capital investments. Growth capital investment generally involves purchasing minority stakes in relatively mature but still unlisted companies.

Bloomberg pointed out that MBK is following the path of its Asian rivals, Pacific Alliance Group (PAG) and Baring Private Equity (PE), both of which sold minority stakes in 2018 and 2016, respectively.

MBK has accumulated significant firepower amid the pandemic. In May 2020, it raised $6.5 billion (about 7.74 trillion KRW) for its '5th Buyout Fund,' and in November, it gathered $1.8 billion (about 2.14 trillion KRW) for its '2nd Special Situations Fund' (a fund investing in corporate restructuring and other special situations).

MBK's 2nd and 3rd buyout funds have nearly tripled in valuation, while the 4th buyout fund and 1st special situations fund have doubled.

Global private equity funds have recently been expanding their businesses in Asia beyond leveraged buyouts.

MBK, founded in 2005, is one of the largest PEFs in Asia and the only major global PEF focusing exclusively on the Korea-China-Japan market.

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