Sent 2023 Annual Letter to Over 10 Domestic and International Institutional Investors
"Focusing on Silver Industry, Investing in Medit and Osstem Implant"
Kim Byung-joo, chairman of MBK Partners, the largest private equity fund in Northeast Asia, emphasized in his 2023 annual letter sent to major domestic and international institutional investors on the 2nd that "opportunities for investment have opened up in the aging populations of Korea, China, and Japan, as well as in China's domestic industries."
On the 2nd, Chairman Kim stated, "China is no longer just an export engine to the world but a major domestic consumer market in its own right," adding, "The contribution of private consumption to China's Gross Domestic Product (GDP) has steadily increased since 2010, while exports have consistently declined since 2010."
He added, "China will become the most attractive market in Asia and one of the most important markets globally."
In fact, MBK Partners focused most of its portfolio on defending Chinese companies last year. Although MBK Partners faced initial difficulties during the COVID-19 lockdown period, it recently generated profits as restrictions on transportation, factory closures, and overseas travel were lifted.
Regarding Korea and Japan, aging was cited as one of the key investment themes. Chairman Kim explained, "Since Japan and Korea are experiencing the fastest aging populations in the world, attention should be paid to the silver industry going forward," adding, "In line with the growing importance of elderly healthcare, MBK Partners has invested in Medit and Osstem Implant."
He said, "The 'golden window' for investment that opened in 2021 remained open until the first half of 2022, but from the second half, it turned into a 'shutter market' that opens and closes, making it difficult to seize investment exit opportunities," adding, "Although IPOs or sales were postponed or canceled, MBK Partners recovered $2.9 billion (approximately 3.799 trillion won)."
Having served as the Asia head of the global private equity firm Carlyle, Chairman Kim founded MBK Partners in 2005 and has led it for 18 years. Over the past 20 years, Chairman Kim has earned a reputation as Asia's top mergers and acquisitions (M&A) expert. His annual letter is regarded as an 'investment compass' that allows institutional investors worldwide to gauge the direction of the Northeast Asian M&A market for the year. Chairman Kim's letter has a significant impact on the industry, influencing over 100 major global institutional investors (LPs) such as the National Pension Service, Canada Pension Plan Investment Board (CPPIB), and Government of Singapore Investment Corporation (GIC).
Last year, MBK Partners executed investments totaling $3.9 billion (approximately 5.7 trillion won), approaching record levels in Korea, China, and Japan, backed by its financial strength. From the end of last year to recently, it has continued prominent investment activities domestically. It successfully completed major buyout deals for Medit (2.5 trillion won), Osstem Implant (2.5 trillion won), and Nexflex (530 billion won).
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