[Edaily Marketin Song Seung-Hyeon Reporter] Private equity (PE) firm LX Investment has finalized the sale of semiconductor equipment company SSP, achieving a return of more than double its initial investment. By reselling the small but strong semiconductor company—which it had acquired three years ago through a project fund—for around 400 billion won, the asset manager, which had previously focused on consumer goods investments, has established a new track record of major exits in the semiconductor sector.

According to the investment banking (IB) industry on the 3rd, LX Investment finalized the sale of its entire stake in SSP to Keystone Partners on the 31st of last month. This comes approximately three months after Keystone was selected as the preferred bidder and a memorandum of understanding (MOU) was signed last April. The transaction is valued at approximately 400 billion won. It is reported that the buyer, Keystone Partners, funded the acquisition using both unspent capital (dry powder) from its existing Blind Fund No. 5 and capital from its new Blind Fund No. 6.

Industry observers are focusing on the exit returns achieved by LX Investment through this deal. In 2022, LX Investment formed a consortium with M Capital (now MG Capital) to acquire a 100% stake in SSP for approximately 180 billion won. At the time, the firm raised funds by establishing a project fund targeting domestic institutional investors, with MG Saemaul Credit Union listed as a major limited partner (LP). Having recovered more than double the principal investment in just about three years since the acquisition, the deal is viewed as an encouraging result for a project fund investment, which typically faces relatively high pressure regarding maturity and capital recovery.

Analysts attribute this success to SSP’s solid fundamentals. SSP holds approximately 60% of the domestic market share in the semiconductor ball mount equipment sector. Ball mount equipment is a core component used in the semiconductor packaging process to attach microscopic solder balls that connect chips to circuit boards, and the market is considered to have high technical barriers to entry. In addition, SSP has expanded its product lineup to include electromagnetic interference (EMI) shielding equipment, camera module manufacturing equipment, and factory automation (FA) systems. With overseas sales accounting for over 60% of its total revenue, the company is recognized for its technological competitiveness in the global semiconductor back-end processing sector.

Its earnings growth has also been steep. Last year, SSP recorded revenue of 56.56 billion won and operating profit of 20.36 billion won, representing year-over-year increases of 38.4% and 58.5%, respectively. The operating profit margin reached 36%. Analysts note that the sale price fully reflects LX Investment’s success in growing both the company’s scale and profitability by capitalizing on the industry trend of expanding demand for semiconductor back-end processes during its holding period.

LX Investment is an investment affiliate of Taejin International, which owns the fashion brand Louis Quatorze, and is led by CEO Kim Chung-won. Although it began by investing in consumer goods companies such as Travelmate and W Concept, it has recently expanded its investment scope to include manufacturing deals—particularly in materials, parts, and equipment—and this SSP divestment is cited as a prime example of the success of that strategic shift.

Under its new ownership, SSP will be incorporated into Keystone Partners’ portfolio. Following recent acquisitions of the education platform ClassCard and the beauty brand Semo Company, this transaction marks Keystone’s expansion into the semiconductor equipment sector. Keystone has a proven track record of buyouts and subsequent exits across various sectors, including manufacturing, consumer goods, and mobility; as a result, it is anticipated that SSP will also undergo a process to enhance its corporate value before being resold.