Firms & Funds

Ohio Police & Fire backs MBK fund for $40 mln

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Ohio Police & Fire, private equity, pension fund, MBK Partners
Fifty thousand won notes are piled up after being counted at a bank during a photo opportunity in Seoul October 13, 2010. REUTERS/Lee Jae-Won/File Photo - RTSS0UG
  • MBK targets $4 bln for Asian buyouts
  • Firm acquired Tesco’s South Korean unit for $6 bln last year
  • Previous fund netting 24.2 pct IRR

Ohio Police & Fire Pension Fund approved a $40 million commitment to MBK Fund IV at its Oct. 19 meeting, spokesman David Grahamwrote in an email.

MBK Partners set a $4 billion target for Fund IV, which would make it the fifth largest Asia-focused vehicle to date, The Wall Street Journal reported in April. The firm maintains investment teams in Seoul, Tokyo, Shanghai and Hong Kong.

MBK typically acquires its portfolio companies through management-led buyouts and corporate divestitures, as well as by taking public companies private. The firm specializes in the financial services, consumer/retail and telecom/media sectors.

The firm’s previous fund, a $2.7 billion 2013 vintage, was netting a 24.2 percent internal rate of return and 1.35x multiple as of June 30, 2015, Los Angeles County Employee Retirement Association documents show.

MBK secured a $6 billion deal for U.K. retailer Tesco’s South Korean operations in 2015. Its Fund III portfolio also includes Doosan Machine Tools, a South Korean machinery producer, and Chinese air freighter company Apex Logistics.

Oregon Investment Council is weighing a commitment to MBK IV at its Oct. 26 meeting, according to state documents.

With its commitment to MBK Fund IV, the $14.2 billion pension has committed $162.5 million to private markets funds in the year to date. Ohio Police & Fire anticipated $235 million of commitments in 2016, Graham wrote.

Action Item: More about MBK Partners: www.mbkpartnerslp.com/