Woori PE set to launch 250 billion won blind fund, betting big on value creation at mid-sized companies [fn Market Watch]

[Financial News] Woori Private Equity Asset Management (Woori PE), which scored big with investments in Krafton and Enchem, is nearing the formation of its third standalone blind fund, worth 250 billion won. It is seen as playing a significant role in Woori Financial Group Chairman Jong-ryong Yim’s strategic push to strengthen the group’s non-bank businesses.
According to investment banking (IB) industry sources on the 5th, Woori PE plans to form the 250 billion won Woori Mid-Sized Company Leap No. 1 PEF this month, eight months after beginning fundraising in April. It has received letters of commitment (LOCs) for 50 billion won from the Export-Import Bank of Korea; 50 billion won each from Korea Growth Investment Corporation (K-Growth) for its Mid-Sized Enterprise Value-Up Fund and Technology Innovation Specialized Fund; and 30 billion won from the Military Mutual Aid Association.
Woori PE was also selected on the 23rd of last month as the preferred negotiating bidder in the general league of Korea Post’s 2026 Domestic Blind Private Equity Fund Commitment Program. The program is worth up to 245 billion won. J& PE and JKL Investment were also named in the general league. Woori PE had earlier been selected, alongside SG PE and KL & Partners, as a delegated manager for K-Growth’s third Bank-Sector Mid-Sized Enterprise Value-Up Fund.
The fund will primarily invest in regional mid-sized companies, targeting technology-based businesses with headquarters, factories or research centers outside the Seoul metropolitan area. Artificial intelligence (AI) and semiconductors are also considered key sectors. The fund aligns with Woori Financial Group’s 80 trillion won Future Win-Win Growth Project. In the first quarter of this year, Woori PE set up the Woori Bailey National Growth PEF and invested 353 billion won.
This is Woori PE’s third standalone blind fund, following the 165.2 billion won Green ESG Fund launched in 2022 and the 110 billion won Woori Corporate Financial Stabilization Fund, a structural innovation fund launched in 2023. The Green ESG Fund completed all its investments in May, and the Woori Corporate Financial Stabilization Fund No. 6 is also expected to finish investing soon, prompting the formation of a new fund. The Woori Corporate Financial Stabilization Fund invested 22 billion won in convertible bonds (CBs) issued by KG Mobility.
Woori PE’s track record in buyout investments—acquiring controlling stakes—is also notable. The Green ESG Fund, together with a separately established project fund, partnered with Eugene PE to acquire an 80% controlling stake in Seoul Electric Wire in March last year for around 150 billion won. As demand for power infrastructure then surged, they sold the controlling stake to Helios PE for around 300 billion won. By the end of September, they had recouped nearly twice their approximately 90 billion won investment. The internal rate of return (IRR) was 53%.
Woori PE’s strongest track record is in growth and mezzanine investments. In March 2020, through the Woori-Shinyoung Growth Capital PEF, it invested 27.8 billion won in Krafton’s redeemable convertible preferred shares (RCPS) and recouped 106.4 billion won. The IRR reached 154%. In 2023, it invested 60 billion won as the anchor investor in a consortium investing in CBs issued by Enchem, a rechargeable-battery electrolyte company, generating an IRR of 124%.
In total, Woori PE’s private equity exit portfolio comprises 14 deals over five years. It invested 380 billion won in principal and received 760 billion won back. The IRR was 50%, and the multiple on invested capital (MOIC) was about 2x. Its cumulative assets under management (AUM) in private equity total about 2 trillion won. The firm’s overall AUM, including trust funds in infrastructure, overseas fund-of-funds and real estate, exceeds 3.8 trillion won. Woori PE plans to seek out new investment opportunities as soon as it completes fundraising.
An IB industry source said, “Woori PE has proven its growth and mezzanine capabilities through Krafton and Enchem, and has also built a buyout track record with Seoul Electric Wire.” The source added, “The successive commitments from policy funds and pension funds reflect recognition of these results.”
[email protected] Kang Gu-gwi Reporter