This article was published on April 17, 2025, at 7:21 a.m. on the ChosunBiz MoneyMove site.
Private equity fund (PEF) manager H&Q Korea has begun raising a blind fund for the first time in five years. The target amount is expected to be between 600 billion won and 700 billion won, and the firm plans to support major investment projects taking place this year.
According to investment banking (IB) industry sources on the 17th, H&Q Korea has recently started the formation of its 5th blind fund.
H&Q Korea was established as a domestic entity in 1998, originating from the Seoul office of the global investment management firm H&Q Asia Pacific. It became a homegrown private equity fund through a spin-off in 2005.
Previously, H&Q Korea created its 4th blind fund worth 530 billion won in 2020. Through this fund, it has invested in Hyundai Elevator, semiconductor display equipment company H&N Luza, online investment-linked (P2P) financial firm Lendit, automotive parts company T&F Global, and optical company Korea OGK.
H&Q Korea aims to make this 5th fund larger than the 4th fund. However, it is expected to fall short of the trillion won mark, aiming for a target range of 600 billion won to 700 billion won.
H&Q Korea has recently entered the fundraising market actively, starting with investments from the Teachers' Cooperative Association. The association received applications for PEF investment projects totaling 700 billion won until the 4th. It is reported that over 20 firms, including H&Q Korea, JKL Partners, Premier Partners, and Praxis Capital, which have been forming blind funds since last year, have applied.
This year, the PEF investment project is expected to see fierce competition among mid-to-large firms in the absence of major players like Han & Company and MBK Partners. Glenwood PE, which recently achieved 'big wins' through investments in PI Advanced Materials and CJ Olive Young, is on the verge of the first closing of its 3rd blind fund, while IMM Investment, which acquired Ecobit last year, is in the process of raising an infrastructure fund.
Premier Partners, JKL Partners, Praxis Capital, and VIG Partners are expected to complete their ongoing fundraising efforts this year. Keystone Partners, JKL Credit Investment, and others are expected to begin fund formation this year.