This article was displayed on the ChosunBiz MoneyMove (MM) website at 4:06 p.m. on Mar. 11, 2026.
Hong Kong-based private equity fund (PEF) manager Anchor Equity Partners (Anchor PE) carried out a recapitalization (recap) of Gukje Electric. It is seen as an effort to borrow against Gukje Electric's stable cash flow to recoup part of its investment.
According to the investment banking (IB) industry on the 11th, Anchor PE completed an 80 billion won recap of Gukje Electric. In this transaction, KB Securities and Woori Bank provided 60 billion won and 20 billion won, respectively. The interest rate was set at an annual 5.9%.
This recap is a measure to retrieve investment funds early after the acquisition of control. Anchor PE initially pursued a recap of about 100 billion won late last year, but is said to have halted the deal itself as the won-dollar exchange rate surged. Because a significant number of the acquisition fund's limited partners (LPs) are overseas institutions, a rising exchange rate could reduce the size of dividends in dollar terms.
After the exchange rate's upward trend stabilized somewhat early this year, the financing size was lowered to 80 billion won and talks were resumed with the lending group, according to reports. An industry official said, "The acquisition financing rate last year was lower than it is now," and added, "This recap appears to be more for investment recovery than for acquisition financing refinancing."
Earlier, Anchor PE acquired 100% equity of Gukje Electric from Asea INT in mid-last year for about 240 billion won. The acquisition funds were reportedly arranged through its fourth blind fund, which raised 2 trillion won, and about 100 billion won in acquisition financing.
Gukje Electric began as Gukje Transformer Manufacturing Plant in 1946 and converted to a corporation in 1957; it is a power equipment company. It produces transformers and uninterruptible power supplies (UPS). Recently, as demand has grown for replacing domestic power infrastructure, its performance has also grown rapidly. As of 2024, revenue and operating profit were 89.2 billion won and 13 billion won, respectively; compared with the previous year, revenue increased 48.2% and operating profit rose 490%. Earnings before interest, taxes, depreciation and amortization (EBITDA) was 12.6 billion won.
Recently, it has posted stable results thanks to the activation of the domestic transformer market. In 2024, revenue and operating profit were 89.2 billion won and 13 billion won, respectively. This represents increases of 48.2% in revenue and 490% in operating profit from the previous year. Earnings before interest, taxes, depreciation and amortization (EBITDA) was 12.6 billion won. Backed by solid technology, it benefited from domestic power replacement demand.
Since the Anchor PE acquisition, it has been pursuing collaboration with North American power generation companies and expanding into artificial intelligence (AI) data centers and renewable energy. Last year, revenue was reported at about 142.5 billion won and operating profit at about 20 billion won. The industry sees Anchor PE moving to recover its investment through the recap as Gukje Electric's performance growth continues.