This article was displayed on the ChosunBiz MoneyMove (MM) site at 2:52 p.m. on Aug. 10, 2026.
Refinancing of the acquisition financing for Kakao Entertainment by Hong Kong-based private equity fund (PEF) manager Anchor Equity Partners (Anchor PE) has run into trouble. Even though it began the refinancing process, including selecting arrangers, ahead of the year-end maturity, lenders continue to turn away due to the stalled listing.
According to the investment banking (IB) industry on the 10th, Anchor PE's refinancing of Kakao Entertainment acquisition financing has stalled at the arranger recruitment stage. Anchor PE was understood to have moved to select refinancing arrangers in the first half, with maturity of about 400 billion won in acquisition financing due in December.
The mood is not positive. First, Hana Securities, which served as arranger for Anchor PE's Kakao Entertainment acquisition financing refinancing in 2023, stepped back. In addition, NH Capital and KDB Capital, which joined the lending group at the time via a syndication, were also said to have declined to rejoin the refinancing.
The drifting of Kakao Entertainment's listing has led lenders to shun the deal. Hana Securities and others took as collateral the equity in Kakao Entertainment that Anchor PE holds through a special purpose company (SPC) on the premise of an initial public offering (IPO), but listing uncertainty has grown.
Anchor PE previously used acquisition financing during its 2021 investment in Kakao Entertainment. It later recouped part of its investment through a recap, and by 2023 the existing borrowings had grown to about 400 billion won. At the time, an IPO was considered a realistic exit scenario.
Kakao Entertainment's listing is now seen as impossible. On top of Kakao founder Kim Beom-su, chair of Kakao's management reform committee, standing trial over allegations of involvement in price rigging during the acquisition of SM Entertainment, a ban on duplicate listings also applies.
Anchor PE also did not put in place safeguards when it pursued a minority equity investment. Minority equity investments premised on a listing typically include options such as a put option (early redemption right) allowing the investor to sell back the equity if an IPO fails within a set period, but Anchor PE invested entirely in common shares without options.
At this rate, some say the interest rate on Anchor PE's Kakao Entertainment acquisition financing refinancing could top the high-8% range annually. Capital companies including JB Woori Capital were already said to have proposed high rates, saying they have no choice but to assess collateral value and corporate value more conservatively.
Anchor PE has moved to speed up proving the possibility of an exit from Kakao Entertainment. If even part of the exit potential is demonstrated, the interest rate can be adjusted downward. In fact, Anchor PE recently chose global IB JPMorgan as the lead manager for an equity sale and was said to have begun recruiting overseas bidders.
An IB industry official said, "Because Kakao Entertainment does not pay dividends and therefore generates no cash flow, Anchor PE must shoulder the acquisition financing interest through the fund," adding, "For Anchor PE, it is essential to prove the possibility of selling a minority equity stake to lower the funding rate."