JKL Strengthens Market Position with 2024 Funding and Investment Achievements

2024 has been a pivotal year for JKL Partners (JKL) as it reaffirmed its fundraising and investment capabilities in Korea's private equity fund (PEF) market. JKL successfully exited T’way Air, doubling its initial investment, and enhanced its expertise in the cleaning industry with acquisitions of Cleantopia and Hwaier. Furthermore, it solidified its position as a fundraising powerhouse by achieving the first closing of its new blind fund, valued at KRW 700 billion, by year-end.

Pursuing Major Deals and Exit Strategies

At the beginning of 2024, JKL formed a consortium with Harim Group to bid for HMM but ultimately did not secure the final contract. Similarly, its attempt to sell Lotte Insurance was not successful, leaving room for improvement. However, the sale of T’way Air stands out as a notable success story. JKL had provided liquidity to the airline during the pandemic and strategically sold its stake to Daemyung Sono Group during the industry recovery, achieving an internal rate of return (IRR) of 23%.

The sale of Lotte Insurance remains ongoing. As it represents JKL’s largest capital deployment, its successful exit is seen as a critical test to strengthen investor confidence and maintain its fundraising capabilities.

Strengthening Expertise in Clean and Mobility Sectors

JKL has also demonstrated exceptional performance in the cleaning sector. After acquiring Cleantopia in 2021, it expanded its B2B market share by acquiring Cleanwash, a hotel laundry service provider. Building on this experience, it invested KRW 100 billion to acquire Hwaier, a premium automatic car wash service provider, further showcasing its expertise in clean tech investments.

In the mobility sector, JKL has made significant strides as well. It played a key role as an investor in the M&A of Motrex, a vehicle infotainment (IVI) specialist, and participated in LS Electric’s acquisition of Tira UTech, a smart factory solutions provider. These efforts have reinforced JKL’s expertise in mobility and advanced technology investments.

Establishing Leadership in Fundraising

In early 2024, JKL raised KRW 700 billion in the first closing of its sixth blind fund, solidifying its reputation as a fundraising leader. Major institutional investors, including the National Pension Service, Korea Development Bank, and the Korea Federation of SMEs, participated as limited partners (LPs), demonstrating strong trust in JKL’s capabilities. The fund is expected to close with an additional KRW 100 billion by May 2025.

Future Plans

Leveraging its robust fundraising in 2024, JKL plans to expand buyout investments targeting promising small and medium-sized enterprises. It also aims to accelerate the sale of existing portfolio companies, such as Lotte Insurance, Donghae Machinery & Aviation, and Megazone Cloud, to reward LPs and build further trust.

Despite setbacks like the failed HMM acquisition and the unsold Lotte Insurance, JKL has solidified its market position in 2024 through active investments and successful exits. The sale of T’way Air and the establishment of a new blind fund underscore JKL’s resilience and fundraising capabilities. JKL’s future activities are expected to play a significant role in shaping Korea’s PEF market.

Seoul Tribune (c)

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