by Park Soyeon
Published 11 Jul.2024 16:21(KST)
Private equity firm Hanwha & Company has completed the formation of a record-breaking blind fund worth 4.7 trillion KRW.
According to the financial investment industry on the 11th, Hanwha & Company recently closed its 4th blind fund at this scale. It is the largest fund ever dedicated to Korean investments.
The composition of limited partners (LPs) is evenly distributed worldwide, with Asia accounting for 35%, North America including the US and Canada 30%, and the Middle East 20%. Following the 3rd fund, 93% of LPs who invested over 100 million USD are known to have re-upped (made follow-up investments).
The initial funding target was 4.4 trillion KRW, but they succeeded in raising investment exceeding this amount. This is analyzed to be thanks to the trust shown by LPs who highly evaluated Hanwha & Company's past performance.
The 3rd fund, formed in 2019, currently records a distribution to paid-in (DPI) ratio of 30%, and an internal rate of return (IRR) of 31%. The IRRs of Hanwha & Company's 1st and 2nd funds are also known to be around 20 to 25%.
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.