South Korea’s biggest private equity fund MBK Partners has pooled in over 2 trillion won ($1.7 billion) for its second special situations fund in the doubled scale of the first kind in $850 million in 2018.

MBK Partners said on Tuesday that it completed financing its $1.8 billion second special situations fund, 2.3 times larger than its $850 million first pool of capital in 2018. The completion of the fund comes less than a year after it began recruiting investors amid unfavorable conditions in a pandemic-driven environment.

According to alternative investment market research firm Preqin, the second special situations fund is the largest of its kind ever deployed by a manager in Asia over the last three years. It is also the largest in size since 2005 when excluding SSG Capital Partners No. 5 set up by Ares SSG in 2018.

MBK Partners’ first special situations fund also made its name as Top 8 special situations fund created by an Asian manager.

Most of the limited partners that participated in the first special situations fund also joined the second fund, while 17 new limited partners enlisted.

Pension funds and institutional investors from home and abroad that took part as limited partners highly evaluated MBK Partners’ investment and recoup performance, inside sources said.

The first fund invested in about 10 companies including BHC, K-Bank, LinkDoc, Accordia Next Golf, and their senior and subordinated loans, to deliver 41.5 percent internal rate of return.

MBK Partners distributed total $1.8 billion profit to limited partners of the first special situations fund.

Kim Byung-ju, chairman and founder of the private equity firm, said that a special situation fund plays a critical role in an uncertain pandemic environment and that investors will see a golden age of investment for several years in the future.

By Kang Doo-soon and Lee Eun-joo

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