PEF for Chinese Market
Lindeman Asia Investment announced on September 6 that it established a private equity fund (PEF) to invest in China, dubbed Lindeman Asia Global Pioneer, and recently registered it with the local financial authorities. Having a size of 300 billion won, this PEF is the largest one of the same type of funds raised in the South Korean capital market and investing in Chinese companies.
Each of the National Pension Service and the Korea Development Bank invested 100 billion won in the PEF and the Korea Teachers’ Credit Union also participated in it with 50 billion won. In addition, a Chinese local government invested hundreds of billions of won.
Earlier in April 2014, Lindeman Asia Investment had agreed to the establishment of a US$200 million fund with the Jiangsu Provincial Government in China while raising a 110 billion-won Global Cooperation Fund with the Korea Finance Corporation. It is said that the fact that Lindeman Asia Investment has never failed in its investment in China attracted the South Korean institutional investors at this time.
Established in 2000, Lindeman Asia Investment has run funds related to investment in China that are worth a total of 360 billion won or so. For example, it has invested in China Tuna (Dalian Ocean Fishing), 3NOD Digital and the overseas subsidiaries of South Korean companies doing business in the Chinese market including Green Cross Hong Kong. Lindeman Asia Investment explained that the Lindeman Asia Global Pioneer is the largest PEF since its inception and the fund will be invested in non-large corporations in various sectors that have a chance of success in Asian markets.