[Edaily Marketin Hur Jieun Reporter] New private equity fund (PEF) managers, which have built their first track records since their establishment, are on the verge of completing a series of successful divestments. The key players are WJ Private Equity, which invested in aircraft parts manufacturer Yulgok, and PTA Equity Partners, which invested in Korea Fund Partners, a domestic fund administration firm. Market attention is focused on these firms because they overcame macroeconomic uncertainties—such as the COVID-19 pandemic that struck immediately after their investments—and, through structural reforms, achieved significant value creation.

Overcoming COVID-19 Headwinds to Hit a ‘Triple Jackpot’… WJ PE Sells Yulgok

According to the investment banking (IB) industry on the 10th, Samil PwC, the lead advisor for the sale of Yulgok—a company specializing in aircraft parts—recently selected VIG Partners as the preferred bidder and is currently finalizing the sale process. The sale targets a controlling stake, including the 47.09% stake held by the consortium of JKL Partners and WJ Private Equity (WJ PE).

This sale marks the first exit deal for WJ PE, which was established in 2019. CEO Jang Won-jae, who leads WJ PE, is a veteran who led the acquisition of Acushnet—owner of the global golf brand Titleist—during his tenure at Mirae Asset Management’s Private Equity Division.

Yulgok, WJ PE’s inaugural portfolio investment, served as a test case to validate the firm’s management capabilities in its early days. In the year of its launch, WJ PE formed a consortium with JKL Partners to acquire existing shares in Yulgok, and subsequently invested approximately 40 billion won in convertible preferred shares (CPS) and other instruments, becoming the second-largest shareholder. The consortium’s total investment amounted to between 50 and 60 billion won.

However, immediately after the investment, the COVID-19 pandemic struck, plunging the entire aviation industry into an unprecedented slump. While Yulgok’s enterprise value also plummeted, WJ PE weathered the storm by focusing on structural improvements and achieved performance growth by capitalizing on the aviation market’s recovery from 2022 to 2025.

The estimated sale price of Yulgok currently being discussed in the market is between 400 billion and 600 billion won. Even using a conservative estimate of 400 billion won, the value of the consortium’s stake reaches around 180 billion won. It is projected to yield a profit of around 130 billion won, representing nearly a threefold return on the original investment.

Value-Up in 5 Years… PTA Equity’s Exit from Korean Fund in Sight

Another emerging private equity firm, PTA Equity Partners, has also demonstrated its ability to create value by successfully completing the sale of its first portfolio investment. PTA Equity Partners has selected Premier Partners as the preferred bidder for the acquisition of Korea Fund Partners—the third-largest fund administration firm in Korea—and is proceeding with the exit process. Established in 2021, PTA Equity Partners is now on the verge of a successful exit approximately five years after acquiring Korea Fund Partners.

The enterprise value of Korea Fund Partners recognized in this sale process amounts to approximately 600 billion won. This is more than three times higher than the enterprise value (160–200 billion won) recognized when PTA Equity Partners acquired the company in 2021. It is assessed that the company has sharply increased its enterprise value through multifaceted value-enhancement efforts, including the implementation of a bolt-on strategy (acquisitions of companies in the same industry), operational efficiency improvements via system upgrades, and the expansion of its professional workforce.

Korea Fund Partners is a key market infrastructure company that provides administrative services—such as fund accounting, calculation of assets under custody, and securities management—necessary for asset management by institutional investors, including private equity funds and pension funds. With a stable cash cow structure and growing demand for administrative services driven by the recent expansion of the alternative investment market, it has long been regarded as a prime portfolio asset coveted by numerous private equity funds.

“Rookie Fund’s” First Exit… Will Determine Follow-On Fundraising and Firm’s Reputation

The investment banking industry is closely watching this deal, as the first investment exit by a new asset management firm holds special significance. This is because, in the private equity market, for a new firm to gain the trust of anchor limited partners (LPs) and establish itself, it must demonstrate a track record of successful exits—beyond simply executing investments.

In particular, given that LPs have become more stringent amid recent global interest rate volatility and a funding crunch in the private equity market, achieving an internal rate of return (IRR) higher than the market average from the very first portfolio investment is directly linked to the firm’s survival. Once a solid initial track record is established, a firm can gain a clear advantage not only in securing investments from major LPs—such as pension funds and mutual aid associations—for its rookie funds but also in the competition to raise capital for mid-sized blind funds.

An investment banking industry insider explained, “For a new asset management firm, the performance of its first portfolio serves as a key benchmark that determines the success of future fundraising efforts and the firm’s market reputation,” adding, “Since both WJ PE and PTA Equity have overcome macroeconomic headwinds—such as high interest rates and the pandemic—and demonstrated solid value-creation capabilities throughout their investment periods, they are expected to strengthen their market position going forward.”