This article was displayed on the ChosunBiz MoneyMove (MM) site at 1:16 p.m. on Jan. 7, 2026.
Korea private equity fund (PEF) manager Daishin Private Equity (Daishin PE) will step in to support VIG Partners' acquisition of LG CHEM's aesthetics division. Since co-investing with VIG Partners in medical aesthetics device company Viol, Daishin PE has been moving in lockstep day after day.
According to the investment banking (IB) industry on the 7th, Daishin PE plans to invest 22 billion won as a mezzanine contributor in the special purpose company (SPC) VIG Partners is setting up to acquire LG CHEM's aesthetics division.
In investment structures using an SPC, the mezzanine tranche typically offers a higher return than senior loans and lower risk than common equity. It is a classic mezzanine approach that meets demand from institutional investors seeking medium risk and medium revenue based on stable cash flow.
Daishin PE plans to fund the entire investment through Daishin Co-Investment 2022 No. 2, a co-investment fund formed with Korea Post. The fund was created in 2022 at a size of 250 billion won.
Daishin PE focused on the growth potential of the medical aesthetics device industry and the possibility of global expansion for LG CHEM's aesthetics division. It concluded that the market has ample room to grow because the division handles fillers, botox, and skin boosters.
The aesthetics division's annual revenue is slightly below 100 billion won, but its earnings before interest, taxes, depreciation and amortization (EBITDA) is reportedly around 30 billion won. The division owns the hyaluronic acid filler brand Ivor, its flagship product, as well as the skin boosters BR-Pharm, Enable, and Vitaran.
Daishin PE pursues an investment strategy of co-investing in control acquisitions by major PEF managers. It also matched pace by co-investing 80 billion won in VIG Partners' acquisition of Viol. In Aug. last year, VIG Partners conducted a tender offer for Viol, a KOSDAQ-listed medical aesthetics device company, and voluntarily delisted it.
In Aug. last year, VIG Partners signed a stock purchase agreement (SPA) to acquire LG CHEM's aesthetics division for 200 billion won and has been expanding its medical aesthetics device portfolio for a bolt-on strategy. After acquiring Ultra V, a company specializing in fillers and skin boosters, it is also pursuing the acquisition of ATGC, a manufacturer of botulinum toxin (botox).