Long-Term Advisory Strategy Since 2021 Launch
Enhancing Corporate Value Through Amicable Relations, Not Disputes
Chairman Do Yonghwan Also Chooses Stability in Transition
Mir Capital, a US-based asset management firm, is set to become the largest shareholder of Stick Investment, a first-generation domestic private equity fund (PEF) management company, by acquiring shares from its founder and Chairman, Do Yonghwan. Given Mir Capital's history of fostering amicable relationships with existing shareholders and pursuing long-term investments, it is expected to maintain Stick Investment's identity, enhance its corporate value, and hold its stake for the long term.
According to the investment banking (IB) industry on January 21, Stick Investment announced the previous day that it had signed an agreement to transfer 11.44% (4,769,600 shares) of Chairman Do's 13.46% stake to Mir Capital. As a result, Mir Capital will secure approximately a 25% stake, firmly establishing itself as the largest shareholder.
Mir Capital Assisted Stick Investment in Attracting Overseas LPs
Founded in 2021, Mir Capital positions itself as a "consultavist," combining consulting and activism. Its approach is distinct from traditional activist funds, which often engage in disputes with major shareholders. Instead, Mir Capital has pursued a strategy of building amicable relationships with the management of undervalued companies and advising on long-term growth strategies. Headquartered in Boston, Massachusetts, it operates research teams for Japan and Asia out of its Tokyo office. The firm primarily invests in listed small- and mid-cap companies in emerging markets such as Asia and Latin America.
In Korea, aside from Stick Investment, Mir Capital has previously acquired stakes in Kavia and Infovine, both listed on the KOSDAQ market. The firm is generally seen as focusing on value enhancement rather than aggressive management intervention. Even after becoming the largest shareholder of Stick Investment, Mir Capital has made it clear that the fund management, investment decision-making structure, investment committee (IC) operations, key management personnel, and organizational structure will remain unchanged. An IB industry insider commented, "They are known for their academic tendencies, as if a group of professors gathered together," adding, "They seem to pursue a very moderate and long-term strategy."
Mir Capital first showed interest in Stick Investment in August 2023 by acquiring a 5.01% stake. It continued to increase its holdings, and by the end of last year, its stake surpassed that of founder Do Yonghwan. Throughout this process, Mir Capital maintained an amicable relationship with Stick Investment. Stick Investment stated, "We have held regular meetings with Mir Capital every quarter to share business results, discuss Stick's future direction, and receive advice," adding, "Mir Capital has also provided significant assistance in attracting overseas limited partners (LPs) for Stick Investment."
Chairman Do's 'Decision to Part Ways' with a Moderate Long-Term Investor
Yonghwan Do, Chairman of Stick Investment
Chairman Do's decision to choose Mir Capital as the buyer is attributed to its moderate approach. Although he had a strong will to defend management rights, it is reported that he decided to step down starting last year. He is said to have considered selling his stake to various potential buyers, including major domestic financial holding companies and large corporations. However, having already communicated with Mir Capital several times and recognizing its intention to manage the company for the long term, he ultimately selected Mir Capital. It is also believed that partnering with Mir Capital, which has been classified as part of the broader activist camp, would put an end to any management rights disputes.
Chairman Do is scheduled to step down after his term as director ends in March. However, as a shareholder with a 2% stake and in an advisory role as "Founding Chairman," he plans to support the transition of major shareholders. This is intended to ensure a smooth transition so that Stick Investment's management philosophy and organizational identity can be maintained stably.
Convincing limited partners (LPs) remains a challenge. Unlike a typical change of PEF management company, a change in management rights only requires notification to LPs, but concerns about continuity of operations may arise. For this reason, it is expected that Mir Capital will maintain the current management structure, with existing executives such as PE Division Head Chae Jin-ho continuing to manage the funds.
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