South Korean private equity firm MBK Partners has wrapped up fundraising for its latest Asian buyout fund, securing $5.5bn – roughly 20% below its original $7bn target – amid a challenging year for the firm and the broader region, according to a report by Bloomberg.
The downsized fund will concentrate on Japan and Korea, each expected to account for around 45% of the portfolio, with the remainder allocated to China. Despite the shortfall, around 80% of MBK’s largest North American and Middle Eastern investors recommitted.
Fundraising difficulties were compounded by a high-profile investigation into MBK’s former supermarket holding, Homeplus Co, where prosecutors are reviewing the issuance of short-term debt as the company approached a potential credit downgrade. MBK has denied any wrongdoing.
The firm, co-founded by billionaire Michael Kim, launched Buyout VI in late 2023, reaching a $3.5bn first close by year-end. The final close comes amid a broader slowdown in Asia-focused private equity fundraising, with Bain & Co reporting total industry inflows of just $74bn – a 10-year low.
Key investors included a $250m commitment from the California Public Employees Retirement System and a $125m re-up from CalSTRS.
