Glenwood PE Successfully Liquidates First Blind Fund

South Korean private equity firm Glenwood Private Equity ("Glenwood PE") has successfully liquidated its first blind fund, drawing significant attention within the industry. The fund achieved one of the highest returns ever recorded among domestic blind funds, solidifying Glenwood PE's reputation as a carve-out specialist.

According to investment banking (IB) industry sources on the 15th, Glenwood PE completed the liquidation filing of its Glenwood Korea No. 1 fund with the Financial Supervisory Service the previous day. The fund, which was established in 2018 with a capital of KRW 450 billion, successfully returned capital to investors after approximately seven years. Major investors (LPs) included the National Pension Service, the Korean Teachers’ Credit Union, and leading domestic financial institutions.

Record-Breaking Returns, Industry-Leading Performance

Glenwood PE's first fund achieved an internal rate of return (IRR) of 29.1% and a multiple on invested capital (MOIC) of 2.2x. This represents the highest return among domestic blind funds exceeding KRW 400 billion, an exceptional performance even by industry standards.

The fund's investments included Haeyang Energy, Seorabeol City Gas, Hanglas (now LX Glass), SKC Kolon PI (now PI Advanced Materials), and CJ Olive Young. Except for CJ Olive Young, all investments were carve-out deals involving the acquisition of subsidiaries or business units from large conglomerates, underscoring Glenwood PE's expertise in this area.

Additional Returns Secured Through Co-Investment Fund

In addition to the main fund, Glenwood PE also established a KRW 700 billion co-investment fund. This provided additional investment opportunities for existing LPs and achieved a solid mid-teen return rate. Notably, this co-investment fund utilized a mezzanine strategy with a medium-risk, medium-return profile, offering downside protection while delivering meaningful returns.

Glenwood PE to Launch Third Fund Amid Rising Industry Expectations

Building on the success of its first fund, Glenwood PE plans to launch its third blind fund this year. The second fund, established with KRW 900 billion, has also achieved a high deployment rate and includes portfolio companies such as CJ Olive Young, LG Chem's diagnostics division (now Inbitros),

SK PU Core, and Techross Environmental Services.

Industry insiders anticipate the third fund will be smoothly raised, with its size expected to exceed KRW 1 trillion. Interest from both domestic and international LPs is already reported to be high.

Glenwood PE Secures Its Position as a Carve-Out Specialist

Founded in 2014, Glenwood PE has rapidly grown within the South Korean private equity market, surpassing KRW 3 trillion in assets under management (AUM). The firm is particularly strong in acquiring non-core subsidiaries or business units from large corporations and multinational companies to enhance corporate value.

At the core of Glenwood PE’s success is a strong leadership team comprising CEO Sangho Lee, Vice President Chanwook Jung, and Vice President Jongwoo Jung. Their focus has not only been on investments but also on actively enhancing the intrinsic value of portfolio companies through job creation and management efficiency improvements.

Expanding into Credit for New Growth Opportunities

Recently, Glenwood PE has expanded into private lending and credit fund sectors. Last year, Glenwood's subsidiary, Glenwood Credit, became the first in the industry to successfully establish a blind credit fund targeting domestic LPs. This diversification signals Glenwood PE’s commitment to developing new revenue models and expanding its portfolio.

Glenwood PE’s continued success serves as a positive indicator for the broader South Korean private equity industry, and expectations are high for its future endeavors.

Seoul Trinbune (c)

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