[Bread-Baking Typewriter] Now You Need to Know About 'Samo Fund'

Analysis of Five Key Issues Including Generative AI
Investment Directions Amid Technological Change

In dramas and movies dealing with chaebol families, private equity (PE) often appears as a 'recurring villain.' It is portrayed as the antagonist to the seemingly good protagonist, frequently depicted seizing corporate control and conducting large-scale restructuring that leads to worker layoffs. In a public opinion survey conducted late last year with over 1,000 Korean adults, 60% of respondents evaluated private equity negatively.

However, from the perspective of private equity, this perception is unfair. Generally, 'buyout' private equity acquires corporate control, enhances corporate value through restructuring, and then generates profits by selling (exiting) the investment. This process also brings positive effects such as revitalizing distressed companies, fostering new businesses and global expansion, strengthening industrial competitiveness, introducing professional management systems, and ensuring transparency.

Institutional private equity funds were officially introduced in Korea in 2004 and marked their 20th anniversary last year. Since then, the assets managed by private equity have expanded to 140 trillion won. The influence of major private equity firms such as MBK Partners, Hahn & Company, IMM PE, Stick Investment, and VIG Partners has gradually increased. Pension funds, including the National Pension Service, and mutual aid associations are also increasing their investment proportions in alternative investment markets, including private equity. Private equity is no longer an entity unrelated to our daily lives.

The book Private Equity and M&A Trends 2025 is an in-depth analysis of the latest trends and industry developments in private equity M&A, which has recently emerged as a key topic in the financial market. It reviews major capital market issues from last year and presents forecasts and mid-to-long-term strategies for this year. The book was co-authored by journalists who have long covered the M&A sector and the Luxent Future Management Research Institute, and it also includes interviews with key private equity stakeholders.

The book suggests investment directions based on technological changes and market trends. Last year, while the growth of the secondary battery market, once called the 'next-generation Korean food source,' slowed domestically, semiconductor investment began to regain attention. Additionally, large-scale power facilities for building artificial intelligence (AI) infrastructure and the waste treatment market driven by urban concentration have emerged as new investment destinations. Thanks to the popularity of K-content, K-beauty and K-food are also gaining attention in the global market, and domestic private equity firms are deploying various M&A strategies in response to these changes.

So, what response strategies will be necessary in 2025? This year is expected to see the emergence of new industries that private equity and institutional investors should focus on amid rapid changes in the capital market. The book selects five core themes?generative AI, distribution, secondary batteries, value-up, and pets?and analyzes the issues and prospects of each sector from multiple angles. In particular, generative AI is entering a full growth phase, with investment opportunities expanding mainly in the United States.

"Are they evil or good? No one can easily answer this question. In fact, there is no need to answer it. Private equity is neither good nor evil; it is simply a neutral entity." As the insights provided by the book suggest, it is now time to stop dismissing private equity as a mere villain and instead consider how to understand and utilize it in a changing market.

Private Equity and M&A Trends 2025 | Written by Jo Se-hoon et al. | Jium Media | 280 pages | 22,000 won