Private equity investment firm Hahn & Company is on the verge of establishing a 4.7 trillion won (US$3.45 billion) buyout fund. The figure exceeds the initial target by a significant margin and stands as the largest among investment funds formed in specific countries across Asia, excluding China, to date.
According to investment banking industry sources on May 26, Hahn & Co. plans to establish its fourth blind fund, totaling 4.7 trillion won by July. The flagship fund will amount to 4.5 trillion won, with an additional project fund of approximately 200 billion won formed through joint investment, or co-investment, with the fourth fund.
Initially, Hahn & Co. planned to establish its fourth fund with a size of 4.3 trillion won. However, the target fund size was exceeded, with domestic institutions such as the National Pension Service and the Teachers Pension contributing more than 1 trillion won, and prominent investors from North America, including pension funds from Canada, New York, and Florida, as well as Mubadala from the United Arab Emirates (UAE), joining the list of limited partners. Reportedly, 95 percent of the large institutions that had invested over US$100 million in the existing funds also participated in the fourth fund. This marks the first time domestic institutions have invested in Hahn & Co.
Through the fourth fund, Hahn & Co. has surpassed its previous records. Previously, the company’s third blind fund was established with a total of 3.8 trillion won, including 3.2 trillion won for the flagship fund and 600 billion won for the co-investment fund. The third fund was previously labeled as the “largest among single-country investment funds,” and the title has now passed on to the fourth fund.
Hahn & Co. has also secured the top position in the ranking of domestic institutional private equity funds, as compiled by the Financial Supervisory Service at the end of the first quarter of this year. The total commitment amount recorded was 13.61 trillion won. MBK Partners ranked second with 11.84 trillion won, followed by STIC Investments with 6.48 trillion won in third place.