This article was displayed on the ChosunBiz MoneyMove (MM) site at 4:23 p.m. on Dec. 9, 2025.
TA Associates, a U.S. private equity fund (PEF) manager that has been quiet in Korea since acquiring the milk tea brand Gong Cha, is pushing to take over management control of ExoCoBio. However, observers say the deal is unlikely to succeed because the founder is prioritizing an initial public offering (IPO) and a minority equity sale.
According to the investment banking (IB) industry on the 9th, K2 Investment Partners, a venture capital (VC) firm that became the largest shareholder of ExoCoBio in 2023, is proceeding with an equity sale. As of the end of last year, the equity held by K2 Investment in fund form was 34.1% of total shares.
The sale price is being discussed at around 700 billion won. However, talks have stalled because the buyer and the seller want different directions for the transaction. TA Associates wants to buy all of K2 Invest's equity and acquire management control, but ExoCoBio founder and CEO Cho Byung-sung wants to become the largest shareholder after K2 Investment's equity sale.
K2 Invest is seeking to restructure governance by splitting its holdings among several financial investors (FIs), allowing Cho to take the largest shareholder position. The FIs that acquire K2 Invest's equity can later recoup their investment through a listing. Cho holds 14.4% of ExoCoBio's equity. If Cho exercises a call option (put option to sell shares) on K2 Invest, the equity can increase to 24.63%.
The founder's litigation risk is a variable. Cho is in civil litigation with former executives and employees who were founding members of the company. During the process in which the former employees were dismissed, they objected to having to dispose of company shares at a low price and filed suits over unfair dismissal and share acquisition. Recently, former executives also filed a criminal complaint, alleging that Cho forged a document guaranteeing the return of shares.
A source in the IB industry said, "K2 Invest tried to proceed mainly with a secondary share sale, but some PEF managers have proposed a management control acquisition," adding, "The entire deal process is being delayed due to multi-lawsuit issues."
Founded in 2017, ExoCoBio is a corporations that manufactures and sells cosmeceutical (a portmanteau of cosmetics and pharmaceuticals) products based on exosome technology. Exosomes are nano-sized vesicles secreted by cells. Exosomes contain various biomolecules and play roles in intercellular signaling, regeneration, and immune regulation.
TA Associates became known in the Korean market with its acquisition of Gong Cha Korea in 2019. It has since reviewed acquisitions of management control for various food and beverage outlets in Korea, but none led to investments. Founded in 1968, it has offices in Boston in the United States, Menlo Park, London in the United Kingdom, Mumbai in India, and Hong Kong. To date, it has a track record of investing in more than 500 corporations worldwide.