EQT set to invest in KKR-backed fashion unicorn Musinsa

EQT, Europe's largest private equity firm, is set to invest 20 billion to 30 billion won ($14 million-$21 million) in Musinsa, South Korea’s fashion unicorn backed by KKR Co. and Wellington Management, according to investment banking sources on Monday.

The Swedish investment firm is finalizing terms for the deal, valuing the fashion platform at around 4 trillion won. 

The deal will involve taking over shares from early-stage Korean investors. EQT is also said to be considering a follow-up investment after the deal closes, the sources said.

Its estimated valuation marks a 15% increase from the 3.5 trillion won suggested by KKR and Wellington Management in 2023, when they poured a combined 240 billion won into Musinsa during its Series C funding round.

In 2024, Musinsa achieved the milestone of 1 trillion won in sales and swung to an operating profit of 102.8 billion won.

With the injection of new capital from EQT, the unicorn, or private company with a corporate value of over 1 trillion won, is expected to launch its IPO process as early as this year by appointing a lead manager.

The investment in Musinsa is being led by EQT Growth, a division of EQT’s Hong Kong office.

EQT, under the umbrella of Europe’s powerful Wallenberg family, has been investing in Korea since 2009 and expanded its presence with a Seoul office launch in 2023.

Last year, it purchased KJ Environment and affiliated companies for about 1 trillion won, an investment aimed at establishing a waste treatment platform in Korea.

Its other Korean portfolio companies include security service provider SK Shieldus Co. and cybersecurity company SecuLayer Co.

Write to Jun-Ho Cha at chacha@hankyung.com
 

Yeonhee Kim edited this article.