Editor’s Note
MBK Partners is set to divest its stake in Japanese luxury jeweler Tasaki, potentially doubling its investment after a seven-year holding period. The move highlights ongoing portfolio adjustments in the private equity sector.
South Korean private equity fund (PEF) manager MBK Partners is selling the Japanese luxury jewelry brand ‘Tasaki’. If the deal is finalized, MBK Partners is expected to reap approximately double its investment return after seven years.
According to the investment banking (IB) industry on the 9th, MBK Partners is in negotiations to sell 100% of its stake in Tasaki to a consortium consisting of Hong Kong-based PEF FountainVest and Japan-based PEF Unison. The expected sale price is around $600 million (approximately 820 billion won).
If this deal is successful, MBK Partners will achieve a substantial investment profit solely from its Tasaki investment. MBK Partners first invested in Tasaki in 2008. At that time, it acquired the company, which was in management difficulties, for 95 billion won. Subsequently, it focused on normalizing operations and sold the company for 280 billion won in 2016, realizing large capital gains.
The following year, Tasaki’s management requested MBK Partners to buy back its stake. MBK Partners, judging that the company still had upside potential, reinvested 4.6 billion yen (approximately 460 billion won at the time) to reacquire the company. Now, after seven years, with the sale of the company, MBK Partners is set to make a profit of 360 billion won.
Tasaki is a jewelry brand founded in Japan in 1954. It is famous as a brand specializing in products made from processed pearls. Momo from the Korean girl group TWICE is active as a model for the brand.
