Carlyle Group and South Korea's KB Financial Group announced Thursday the signing of a memorandum of understanding, establishing a strategic partnership between the Carlyle Asia Partners V fund and the Seoul-based conglomerate.
The two firms also signed an agreement that will see Carlyle invest 240 billion won ($199.2 million) "into KB Financial through an exchangeable bond utilizing KB Financial's treasury shares" through its fund.
Yoon Jong-gyu, KB Financial's chairman, in a joint news release, said the alliance "will enable KB Financial to accelerate its global growth through close cooperation with Carlyle in discovering new investment opportunities, both in Korea and abroad," while helping Carlyle invest more in South Korea.
John Kim, the Carlyle Asia Partners advisory team's Hong Kong-based managing director, cited KB Financial's leading position in South Korea and the "excellent risk management capabilities" the group has displayed during the COVID-19 crisis as factors behind the alliance Carlyle is counting on to build its presence in the country.
The Carlyle Asia Partners V fund closed in 2018 at $6.55 billion, the release said.
Carlyle, meanwhile, said it had made private equity investments amounting to more than $21.5 billion across 235 deals in the Asia-Pacific region through March 31, 2020.
Carlyle has made more than 20 investments in South Korea, with combined assets of more than $1.75 billion.
