Han & Company Challenges 50 Trillion Asset Goal ... Launching 4th Fund

Total Assets of Invested Companies 47.8 Trillion KRW, Total Sales 18.6 Trillion KRW
3rd Blind Fund 3.8 Trillion KRW … 4th Also Expected to Be Trillion-KRW Super Fund

[Asia Economy Reporter Park So-yeon] The domestic private equity fund (PEF) operator Han & Company (Han & Co) is aiming to reach an asset size of 50 trillion won.

According to the investment banking (IB) industry on the 20th, Han & Co has begun raising its 4th blind fund (a fund that collects capital first without specifying investment targets and later finds investment destinations) targeting pension funds, mutual aid associations, and investment institutions. The 3rd blind fund raised in 2019 was 3.8 trillion won. Considering this, the 4th fund is also expected to be raised as a trillion-won super fund. Currently, Han & Co's total assets under management amount to 11 billion dollars (approximately 14.3 trillion won).

Since raising its 1st fund worth 890 billion won in 2011, Han & Co has entered the mergers and acquisitions (M&A) market. Based on the 1st fund and the 2nd fund raised in 2014 with a scale of 1.43 trillion won, it has made controlling stake investments in manufacturing, shipping, distribution, and hotel sectors. Through active M&A, the total assets of companies operated by Han & Co currently amount to about 47.8 trillion won, with total sales exceeding 18.6 trillion won. The workforce also reaches about 30,000 employees.

Han & Co is a PEF noted in the industry for its rapid growth. In the case of the 1st fund, which has completed all investments, investors have already recovered their principal, and the fund’s investment performance has grown more than tenfold compared to the principal. Representative success cases include Ssangyong Cement acquired in 2015 and H-Line in 2014. Recently, it completed the acquisition of the film business division, the origin of SKC, for 1.6 trillion won. The industry expects Han & Co to conduct aggressive M&A targeting companies undergoing restructuring amid the COVID-19 pandemic and high interest rate environment through the 4th fund raising.

Han & Co, known as a ‘chimney industry powerhouse’ due to its long-term investment experience in the manufacturing sector, is recently pursuing investment diversification. In 2018, after acquiring Hotel Hyundai, which owns 5-star hotels in Gyeongju, Ulsan, and Mokpo from Hyundai Heavy Industries Group, it has been growing by acquiring local small and medium-sized hotels one after another. In the case of K-car, a non-face-to-face used car sales platform, it quickly raised awareness by featuring actor Ha Jung-woo and recently put it up for sale. Although a dispute is ongoing, the acquisition of Namyang Dairy Products is also expected to be completed around next year.

An IB industry official said, "Although the market situation is unfavorable, Han & Co’s 4th fund raising is steadily progressing behind the scenes," adding, "They plan to prepare ammunition at a time when corporate performance is deteriorating and restructuring is necessary to seek a turnaround opportunity."

This content was produced with the assistance of AI translation services.