North Asian buyout firm MBK Partners has raised $5.5 billion for its sixth fund, lower than the earlier reported target of $7 billion, according to media reports.
The fund close was reportedly announced during the private equity firm’s annual general meeting last week.
With this size, MBK Partners Fund VI is the largest fund raised by an Asia-focused independent asset manager this year. In other significant fundraising milestones, TPG closed its eighth Asia buyout fund at $5 billion, while CVC Capital raised $6.8 billion for its latest pan-Asia vehicle last year.
The firm launched its sixth fund in November 2023. MBK’s fifth fund was closed at $6.5 billion in May 2020, according to AVCJ.
Nearly 80% of existing limited partners (LPs) reupped in MBK Partners Fund VI, according to the media reports.
The Seoul-headquartered firm has raised capital from LPs such as Canada Pension Plan Investment Board, the Ontario Teachers’ Pension Plan, Temasek, China Investment Corporation, National Pension Service, Public Officials Benefit Association, and Teachers’ Pension and Korean Reinsurance.
MBK has reportedly scored 40 exits, returning 2.2x of investor money, with an IRR of 18%, over the past decade.
Exits in this year alone mounted to $2.4 billion, according to local publications. Meanwhile, some $2.9 billion was deployed in new investments, including Japan-based Arinamin Pharmaceuticals and semiconductor producer FICT, and Korea Zinc.
MBK is understood to have said that it will focus on four core growth areas, including artificial intelligence (AI), the Japanese market, healthcare and consumer-focused sectors, and private credit and hybrid finance.
MBK, which manages over $30 billion in capital, has been focused on financial services, consumer and retail, telecom and media and geographical markets of South Korea, Japan and Greater China.
The firm’s latest fund was closed at a time when local authorities were scrutinising its acquisition of supermarket chain Homeplus over suspected unsound business practices and violations of internal control obligations.
