Sale prospects are being floated around mid-sized real estate management company S&I Corporation (hereafter S&I). With Macquarie Asset Management, a global private equity fund (PEF) manager and the largest shareholder, now in its fourth year since acquiring S&I, analysts say it has entered a phase to review a full-fledged exit strategy.
According to reporting compiled by ChosunBiz on the 9th, Macquarie Asset Management is said to be reviewing various exit options, including selling S&I. The assessment appears to be that the current moment—when performance growth has continued since the acquisition—is an appropriate window to recoup the investment.
S&I was established at the end of 2021 when the facility management (FM) division was physically partitioned from D&O, the leisure and real estate development affiliate of LG Group. In Feb. 2022, Macquarie Asset Management, through the investment vehicle Shincorporation Holdings, acquired 60% equity in S&I for about 360 billion won, becoming the largest shareholder. In the investment banking (IB) industry, attention is on the possibility that S&I, which split from LG Group and settled under a private equity structure, may again enter a phase of ownership restructuring.
Inside the company, there is keen attention on the possibility of change. An S&I employee said, "As talk circulates that the largest shareholder could change, there are concerns about organizational stability and the future direction of management," and noted, "Depending on who the acquirer is, the company's strategy and culture inevitably change, and a sense of tension is being felt among employees."
Since shifting to a PEF structure, S&I has maintained steady performance growth. Based on its facility management and real estate operation and management businesses, it has built a stable revenue and profit structure. In 2024, S&I posted 851.1 billion won in revenue and 48.3 billion won in operating profit. Year over year, revenue rose 8% and operating profit increased 7%.
By pushing the digitalization of space management—such as AI-based CCTV, an electric vehicle fire response solution, a remote management system (RMS), and the office life-care platform "Sandy App"—the company is also securing future growth engines. Through this, S&I aims to reach 1 trillion won in revenue in 2027. With results on a stable trajectory and even a mid- to long-term growth story in hand, the view is gaining traction that, from the PEF's perspective, the company has entered a window where pursuing a sale would not carry heavy burden.
At the end of last year, Macquarie Asset Management carried out an S&I refinancing of about 280 billion won and also undertook a recapitalization (recap) to realign the capital structure. Of that, 160 billion won was used to repay existing borrowing fund, and 80 billion won was injected as recap capital. A 40 billion won revolving credit facility (RCF) was also set up. A recap is a process of readjusting the proportions of liability and equity, used to enhance financial stability or secure flexibility for strategic options such as future investment or sale.
An IB industry source said, "When a PEF considers recouping its investment, tidying up the financial structure through refinancing and a recap is a common step," and added, "Now that it is in the fourth year after the acquisition, it may have entered a phase of informally gauging interest from potential buyers."
Changes in management are also drawing attention. S&I replaced its CEO in September last year. Seo Hyun, who served as head of the FM division's integrated management and operations team and head of operations innovation, was appointed as the new chief. The move is seen as personnel reshuffling with an eye on reorganizing the mid- to long-term growth strategy and potential future changes in governance.
In the market, there is speculation that Macquarie Asset Management could sell a controlling equity stake to a strategic investor (SI), pursue a transaction with a financial investor (FI), or consider a scenario of gradually recouping funds after selling part of its equity. Given the characteristics of the real estate operation and management business—stable earnings structures based on long-term contracts—potential buyers being discussed range widely, including large corporate affiliates, mid-sized companies, real estate asset managers, REITs, and financial investors.
An S&I official said, "Nothing has been decided yet regarding matters such as a company sale."