US PE firm Miri Capital ups stake in Korea’s STIC Investments

US private equity firm Miri Capital Management LLC said on Tuesday it has raised its stake in STIC Investments Inc. to step up its shareholder activism against South Korea’s only listed PE firm.

Miri Capital has increased its shareholding in STIC Investments to 11.54% as of April 11 from 10.24% on Dec. 19, 2024, according to its regulatory filing.

The boutique investment fund manager is STIC Investments’ second-largest shareholder after its founder and Chairman Do Yong-Hwan, who owns 13.46%.

STIC Investments has been the target of shareholder activism as Seoul-based Align Partners Capital Management Inc. joined Miri Capital in building up a stake.

Align said last month that it has raised its shareholding in STIC Investments to 6.64%.

MIRI CAPITAL, ALIGN TEAM UP

The move comes as Do, 68, is approaching retirement, and Korean buyout firms are increasingly targeting companies with poor governance to extract better returns.

Align and Miri Capital bought stakes in Gabia Inc., a Kosdaq-listed information technology service provider.

Miri separately on Tuesday said it has ramped up its stake in Gabia to 14.1% from 12.44%.

Align also said it has an 8.04% stake in Gabia as of March 26.

Write to Da Eun Choi at max@hankyung.com
 
Jongwoo Cheon edited this article.