Activist fund Align Partners Asset Management sent an open shareholder letter to domestic private equity fund (PEF) manager STIC Investments, demanding concrete measures to enhance corporate value, including a generational transition plan and the cancellation of treasury shares.
Align, a major shareholder holding 7.63% (3,184,99 shares) of STIC Investments' equity, urged in an open letter sent to the board on the 24th, "By Jan. 19, 2026, officially announce a plan to enhance corporate value that takes into account six proposals."
Align said the share price level of STIC Investments is excessively undervalued. In the open letter, Align said, "Even though it manages more than 1 trillion won in assets centered on institutional clients, its return on equity (ROE) as of the end of the third quarter this year has stayed around about 0.3% over the past 12 months, which is hard to see as normal."
It added, "The current market capitalization is about 363 billion won, which, after deducting net financial worth of 207.3 billion won, means the market values it at only 155.7 billion won," and explained, "It is significantly undervalued when considering intangible assets such as a 26-year track record (performance), industry network, and excellent investment talent."
It continued, saying it is important to reform the internal structure by announcing a next-generation leadership succession plan and overhauling the compensation system to enhance corporate value, and noted, "Aside from the purpose of employee compensation, half of the treasury shares held should be used for compensating next-generation management and securing key talent, and the rest should be canceled immediately to resolve governance uncertainty."
In addition, it demanded: ▲ expanding assets under management and strengthening the revenue base through the appropriate use of leverage (borrowing) at the manager level ▲ announcing a mid- to long-term corporations growth and shareholder value enhancement strategy ▲ implementing measures to improve institutional board independence and expertise.
Align explained that after becoming a shareholder of STIC Investments in Feb. last year, it held four private meetings with management and sent five private letters, but, with no progress, it decided to shift to a public campaign.