[Asia Economy Reporter Jang Hyowon] Private equity firm Forest Partners has reportedly earned about four times its investment in Jeju Beer over five years.
According to the Financial Supervisory Service's electronic disclosure on the 2nd, “Yuhan Hoesa FP Pine Tree No.1,” the third largest shareholder of Jeju Beer, sold 1.12 million shares (2%) out of 3.2 million shares (5.71%) it held on the first day of Jeju Beer's listing last month on the 26th.
Before Jeju Beer's listing, FP Pine Tree No.1 placed a one-month lock-up on 1.12 million shares (2%) and a three-month lock-up on 960,000 shares (1.71%) of its total holdings. It disposed of all shares that were not subject to lock-up on the listing day.
The disposal price was 4,876 KRW per share, converting to about 5.5 billion KRW in cash. Previously, FP Pine Tree No.1 had invested a total of 4 billion KRW in Jeju Beer in November 2016. This sale recovered more than the initial investment.
The rate of return is also remarkable. When FP Pine Tree No.1 first invested in Jeju Beer, the price per share was 1,250 KRW. It earned over 290% profit in about five years.
FP Pine Tree No.1 is a blind fund established by the private equity firm Forest Partners. Forest Partners, founded in 2016, is led by CEO Han Seung.
CEO Han is an investment expert who graduated from the University of Michigan's Department of Economics and the University of Washington Law School, and has worked at U.S. private equity firms Crane Partners and BRV Capital Management.
Meanwhile, Jeju Beer’s opening price on the first day of listing was set at 4,780 KRW, 49% higher than the public offering price of 3,200 KRW, rose to 6,040 KRW during the day, and closed at 4,900 KRW. The previous day’s closing price was 4,765 KRW.
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