S Korea's biggest PE firm Hahn & Co closes fourth fund at $3.4b, exceeds target

S Korea's biggest PE firm Hahn & Co closes fourth fund at $3.4b, exceeds target

South Korea’s largest private equity firm Hahn & Co surpassed its target to hit the final close of its fourth flagship at $3.4 billion, marking the biggest fund in Asia targeting one country this year, according to a Bloomberg article posted on the firm’s website.

Hahn & Co fund, which had targeted to raise $3.2 billion, also includes a co-investment sum of $140 million.

Investors from Asia contributed 35% to the fund, while limited partners (LPs) from the US and Canada invested 30%, and Middle Eastern LPs invested 20%, the Bloomberg report said.

DealStreetAsia reported in February that the New York State Teachers’ Retirement System committed up to $150 million to Hahn & Co IV.

The majority of investors in the predecessor fund, each with commitments that top $100 million, are understood to re-invest a higher sum in the fourth fund.

Last year, Hahn & Co raised a debut won fund to invest alongside the fourth flagship fund.

Founded in 2010 by Scott Hahn, formerly CIO of Morgan Stanley Private Equity Asia, Hahn & Co raised $3.2 billion for its third fund in 2019. Its second vehicle was closed at $1.9 billion in 2014, following the $750-million fund in 2012.

The Bloomberg article said the first two funds posted net returns of 20% to 25%, while Fund III generated 31%.

The South Korean buyout firm has to date invested over $27 billion in domestic companies. Earlier this year, the firm acquired SK Group’s ceramics business SKC. It also acquired Cynosure to create one of the largest aesthetic medical device companies in the world, after the acquisition of Lutronic in 2023.

Last December, Hahn & Co exited biodiesel manufacturer SK Eco Prime to Hillhouse Investment. Earlier in 2022, the firm closed a $1.5-billion single-asset continuation fund for cement maker Ssangyong C&E.

 

Edited by: Padma Priya

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