[Exclusive] Synergy Partners Sells Synergy IB Investment

Synergy Partners, a corporate finance investment firm, has confirmed the sale of its subsidiary Synergy IB Investment.

According to the investment banking (IB) industry on the 7th, Synergy Partners sold 100% of Synergy IB Investment's shares in January.

The deal is reported to include an earn-out option. If Synergy IB Investment generates profits in the future, Synergy Partners may receive additional purchase payments based on certain conditions.

Synergy IB Investment, established in 2014, is a new technology finance operator. It mainly invests in mezzanine instruments such as convertible bonds (CB) and bonds with warrants (BW) for domestic small and medium-sized enterprises (SMEs) and mid-sized companies. As of the end of 2022, it recorded operating revenue (sales) of 11.3 billion KRW, operating profit of 5.1 billion KRW, and net profit of 4.0 billion KRW. Its total capital amounted to 32.3 billion KRW.

According to the industry, Synergy IB Investment has completed liquidation of 23 funds, including investment recoveries from companies such as TiRobotics, ITCEN, Humedics, and Sinopex. Its blind funds have maintained excellent performance, recording an average double-digit internal rate of return (IRR).

Currently, Synergy IB Investment is led by CEO Lee Geon-young. CEO Lee joined Synergy IB Investment in 2017 as head of the alternative investment division after working at KB Securities, Woori Investment & Securities, and BNW Investment. Since 2020, he has served as CEO, leading the company. It is reported that he will continue as CEO and lead Synergy IB Investment even after the sale.

Meanwhile, Synergy Partners has recently been selling its affiliates. In January, Synergy Partners signed a contract to transfer 14.6% of the shares and management rights of its affiliate Cody to GP Club. Synergy Partners acquired the cosmetics company Cody in early 2018.

Since last year, Synergy Partners has been re-pursuing the sale of medical device company MITECH. The sale to the global company Boston Scientific was canceled in June 2022. Synergy Partners is reportedly seeking buyers mainly through private equity funds (PEF).