This article was published on the ChosunBiz MoneyMove (MM) site on Aug. 5, 2025, at 1:38 p.m.
Domestic private equity fund (PEF) operator Affirma Capital is on the verge of acquiring waste treatment companies owned by Equus Development, including CEK (formerly KC Environmental Services). It has been evaluated that they secured the stability of funding by obtaining a scientific and technological personnel pension fund as an anchor limited partner (LP).
According to the investment banking (IB) industry on the 5th, Affirma Capital is expected to complete the acquisition of six waste treatment related companies, including CEK, from Singaporean investor Equus Development within this month. This comes three months after signing the stock purchase agreement (SPA) in June.
Affirma is expected to acquire CEK and others entirely in cash without acquisition financing. The acquisition price is approximately 420 billion won. A senior project fund will be raised with 320 billion won, and a blind fund will be utilized to support 100 billion won in a junior capacity.
Initially, some investors (LPs) intended to make additional investments in a coin investment format, but the structure was changed. This is said to reflect the intention of one of the anchor investors. Instead of seeking additional revenue through coin investment, LPs decided to enhance investment stability with an annual dividend guarantee of around 8%.
CEK's predecessor is KC Environmental Services. CEK ranks first in incineration capacity in the Gyeongsang and Jeolla regions and third nationwide. It has subsidiaries such as CEK Yeosu. It is reported that the acquisition targets, including CEK, recorded approximately 30 billion won in earnings before interest, taxes, depreciation, and amortization (EBITDA) last year.
Equus Development is a Singaporean infrastructure-focused investment firm that acquired 100% equity of KC Environmental Services from KC GreenHoldings, Korea Investment Private Equity (PE), and Industrial Bank of Korea - Eugene PE for mid-200 billion won last year.
Affirma Capital has been continuously acquiring waste companies. Last year, it acquired Korea's top waste landfill company, JNTec, in partnership with The Hahm Partners. Its enterprise value (EV) was assessed to be around 500 billion won. At that time, they also utilized project funds without raising acquisition financing.
In 2023, they also acquired the chemical waste recycling company Kwangjin Chemical together with The Hahm Partners. Previously, in 2016, they acquired the water treatment company Kolon Water & Energy and then launched EMC Holdings after bolting on six waste companies. They later sold it to SK Engineering for 1.05 trillion won.