April 25, 2024

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South Korea’s private equity firm Hahn & Co. said on Oct. 1 it has closed Fund III at $3.2 billion -- the largest fund focused solely on Korean companies to date.

It comprises a flagship fund of $2.7 billion and companion $500 million co-investment fund.

The addition brought Seoul-based Hahn & Co.’s total assets under management to $6.7 billion, which has jumped ninefold in eight years. It is the second largest by AUM, after MBK Partners.

Hahn & Co. CEO Hahn Sang-won

“We are pleased to successfully complete this important and significant fundraising despite the uncertain economic times,” Hahn & Co. CEO Hahn Sang-won said in a statement.

“Our investors share the strong conviction we have in the long-term prospects of Asia and of Korea. We look forward to devoting our energies to make important and responsible investments that consistently deliver high returns and further enhance the development of companies.”

Since its foundation in 2010, Hahn & Co. has executed strategies in its merger and acquisition activities that were seen as being unique in Korea. These include bolt-on acquisitions, under which the PEF acquires small companies in the same line of business and fosters organic growth and synergy effects between portfolio firms.

These strategies are seen in its cement manufacturer portfolio Ssangyong Cement Industrial, which grew in size by acquiring other firms owned by Hahn & Co. such as Daehan Cement and Hannam Cement. This was also seen in automotive thermal management solutions firm Hanon Systems, which in March acquired Magna International‘s fluid pressure and controls operation.

Moreover, none of its 22 portfolio companies have seen a loss in value, according to Hahn & Co.

Companies controlled by Hahn & Co. currently generate revenues of approximately $10.9 billion with over 29,000 employees globally, according to the PEF.

Its portfolio companies include dry bulk carrier H-Line Shipping and wet tanker carrier SK Shipping, as well as Hanon Systems and Ssangyong Cement.

By Son Ji-hyoung (consnow@heraldcorp.com)