This article was published on Jan. 17, 2025, at 5:08 p.m. on the CHOSUNBIZ MoneyMove site.
Private equity fund management firm UCK Partners is nearing the liquidation of its first blind fund. This follows the decision to sell its remaining equity stake in Toz to character marketing company HNF. The internal rate of return (IRR) for the first fund is estimated to be in the low 20% range.
On the 17th, according to the investment banking (IB) industry, UCK Partners signed a stock purchase agreement (SPA) with HNF to sell Toz's unmanned center business. They plan to complete the payment for the sale around the Lunar New Year and liquidate the fund in the third quarter of this year.
Toz operates study cafes. Its official corporate name is P2P Systems. UCK Partners acquired it in 2017 for approximately 44 billion won. Subsequently, in 2022, UCK Partners made the study room and study cafe division, which accounted for over 90% of total sales, a wholly owned subsidiary of Toz and partitioned it before selling it to AtoStudy. The current sale to HNF involves the remaining meeting center sector after selling the study room and study cafe business.
It is reported that UCK Partners has recovered more than its initial investment through the sale of its study room and study cafe business and the current meeting center business.
With the sale of the remaining equity stake in Toz, UCK Partners is left with no remaining assets from its first blind fund. The UCK Partners first blind fund was established in 2014 with a size of 307.4 billion won. In 2016, it already recuperated its entire initial investment through just one location of Gongcha. UCK Partners acquired a 70% stake in Gongcha for 36 billion won and sold it to TA Associates for 350 billion won two years later, yielding a sixfold revenue.
In addition, Yumoment, Apelgamo, Gourmet F&B, F&D Net, and Rosen Cheese & Food are among the portfolio companies included in the first blind fund. The most recent asset sold was the health supplement distribution company F&D Net, which was sold to Daesang for 53 billion won.