Hyundai Investments seeks to raise up to €200 million for BC Partners’ buyout fund

Hyundai Investments Co. Ltd., wholly owned by Hyundai Marine & Fire Insurance Co. Ltd., is seeking to raise between €100 million ($107 million) and €200 million from insurers and small-sized domestic savings funds to invest in a €7.5 billion buyout fund of British private equity firm BC Partners LLP.

BC Partners has already drawn €400 million from three South Korean institutions - National Pension Service (NPS), Korea Investment Corporation (KIC) and Hyundai Marine – for its 10^th buyout fund which targets companies in Europe and North America.

On top of the commitments, Hyundai Investments is raising additional money through a fund to invest in the buyout fund. It plans to close the fund of funds by end-June, according to investment banking sources on April 19.

It is known that Hyundai’s FoF has attracted about 30 billion won ($26 million) from two unidentified institutional investors up to date.

Hanwha Securities Co. Ltd. is acting as its placement agent.

After beginning fundraising last year, BC Partners brought forward the closing date to July from September because of strong demand.

The London-based private equity house manages about €13 billion in assets. It is currently running eighth and ninth funds after liquidating its previous seven buyout funds. The annual internal rate of returns of its buyout funds exceeded 30% on average, said a source South Korean savings fund.   

NPS and KIC committed €200 million and €150 million each to the 10^th fund. Hyundai Marine, South Korea’s second-largest non-life insurer by assets, also committed €50 million, in a rare investment by a domestic insurer in a single buyout fund.

Separately, Hana Asset Management Co. Ltd. has recently raised €44.2 million mostly from domestic life insurers through a fund to invest in CVC Credit Partners’ European private debt fund.

By Daehun Kim

daepun@hankyung.com