This article was displayed on the ChosunBiz MoneyMove (MM) site at 11:57 a.m. on Sept. 4, 2026.
Private equity fund (PEF) manager KStone Partners has completed its acquisition of power equipment solution corporations Woojin M&E. In particular, as Woojin M&E has emerged as a beneficiary of increased power demand driven by artificial intelligence (AI), nearly 80% of the roughly 300 billion won in acquisition funding was reportedly raised through a project fund.
According to the investment banking (IB) industry on the 4th, KStone Partners completed payment of the acquisition price for Woojin M&E the previous day and closed the transaction (closing). It came about a month after it signed a stock purchase agreement (SPA) in Aug. to acquire 100% equity in Woojin M&E held by Curious Partners for about 300 billion won.
KStone Partners raised most of the acquisition funds through the roughly 230 billion won project fund "KStone Grid Solution." It initially planned to create a 150 billion won project fund alongside part of its third blind fund capital (40 billion won) and raise 100 billion won in acquisition financing, but reduced the acquisition financing to around 30 billion won.
Growing expectations for power grid expansion driven by the spread of AI data centers became a tailwind as limited partners (LPs) continued to show interest in Woojin M&E. A significant number of LPs in the third blind fund that KStone Partners formed early last year are understood to have joined as co-investors in the project fund.
Woojin M&E, founded in 1984, is a power equipment distribution specialist corporations used in the semiconductor and display industries. Beyond simple distribution, it has expanded into power equipment design and installation solution businesses, pushing last year's revenue above 200 billion won. Operating profit was 22.4 billion won, tripling from the previous year.
KStone Partners is said to have pursued the acquisition based on a high assessment of Woojin M&E's cash generation and growth potential. It judged that demand for power equipment is increasing with new AI data center builds and semiconductor plant expansions, strengthening Woojin M&E's order pipeline.
An IB industry official said, "Initially, KStone Partners was known to be financing about 30% of the acquisition price with acquisition financing, but as money flowed into the project fund, the size of the loan was adjusted," adding, "Given that the acquisition financing rate is in the high 6% range, it also captured the effect of reducing interest burdens."
KStone Partners is reportedly planning to expand Woojin M&E's scale on the back of increased investment in AI data centers and semiconductors, then seek exit options such as an initial public offering (IPO). It also plans to accelerate overseas market entry while pursuing cooperation with portfolio corporations such as semiconductor equipment companies.
Meanwhile, Curious Partners completed the sale to KStone Partners a little over two years after acquiring 100% equity in Woojin M&E in June 2024, delivering a realization result. Considering that the transaction price at the time was around 235 billion won, it is estimated to have earned a gain on sale of roughly 70 billion won.