[Edaily Marketin YunJi Kim Reporter] There has been a series of cases where global private equity fund (PEF) managers are selling portfolio companies to strategic investors (SIs), including large conglomerates. While secondary transactions—in which portfolio companies are resold to other private equity firms—are also recovering, strategic investors such as large conglomerates are re-emerging as major buyers, as they tend to reflect higher premiums in their acquisition prices by factoring in synergies with existing businesses as well as technology and customer bases.

According to industry sources on the 11th, the presence of strategic investors—including large conglomerates—is growing in the portfolio divestment process of global private equity firms. According to a report recently released by the global consulting firm Ernst & Young (EY), trade sales—in which portfolio companies are sold to strategic buyers such as corporations—led global private equity fund (PEF) exits in the first half of this year. The total exit value also increased by 9% compared to the same period last year.

Exits via strategic investors have been expanding significantly since last year. According to another report released by EY in June, the total value of portfolio assets sold by global private equity firms to strategic investors last year reached $500 billion (approximately 708.2 trillion won). This represents an increase of about 70% in transaction value and 24% in the number of deals compared to the previous year. EY explained that sales to strategic investors, which had slowed in 2023–2024, have regained momentum, driven by companies’ accumulated acquisition demand and a recovery in investor sentiment.

Amid this trend, global private equity firms are rapidly selling off their prime portfolio companies to strategic investors. The most notable player is Permira, which has completed five strategic exits this year alone. This month, Permira agreed to sell BioCatch, a financial fraud detection company, to global payments firm Visa for $2.4 billion. This comes approximately two years after Permira first invested in the company in 2023 and secured a stake at a valuation of $1.3 billion in 2024. During the investment period, BioCatch’s revenue tripled, and its gross profit more than tripled.

In addition, Permira agreed last May to sell “iMed Radiology Network,” Australia’s largest diagnostic imaging provider, to the Hong Kong conglomerate Jardine Matheson. After acquiring iMed in 2018, Permira expanded its business regions and clinical networks and invested in AI-based diagnostic imaging technology. Jardine Matheson plans to use this acquisition to expand its healthcare diagnostics business as a new growth engine.

Carlyle, much like Permira, has also been making a series of exits to strategic investors. In January, the firm sold Tescan, a Czech manufacturer of electron microscopes and analytical equipment, to Shimadzu Corporation, a Japanese precision instrument manufacturer. This came approximately three years after Carlyle acquired Tescan in 2022, with Tescan’s enterprise value estimated at $850 million (approximately 1.2042 trillion won). Shimadzu Corporation plans to integrate Tescan’s electron microscope technology into its existing analytical and measurement equipment business.

In March, Carlyle also finalized a deal to sell the Colombian oil company Sierra Cole Energy to the Philippine infrastructure firm Prime Infrastructure Capital. SierraCol produces approximately 77,000 barrels of crude oil per day, accounting for about 10% of Colombia’s total oil production. After acquiring Occidental Petroleum’s Colombian oil and gas assets in 2020 to launch SierraCol, Carlyle has invested approximately $1 billion to stabilize production and reduce emissions.

Investment banking analysts note that, aside from the resurgence of the secondary buyout market, the strategic premium that strategic investors (SIs) can pay is becoming increasingly important. While private equity firms face limits on how high they can raise acquisition prices due to the need to meet target returns, SIs can factor into the price the business value gained through the acquisition—such as technology, customers, and market position. Simply put, this means that while private equity firms may struggle to command a premium, companies can add one by factoring in synergies with their existing businesses. Consequently, industry experts explain that it is becoming increasingly important to assess, from the investment stage onward, which strategic buyers might require the asset in the future.

An official at a foreign private equity firm operating in Korea stated, “While it is important to select companies with high growth potential early in the investment process, it has also become crucial to identify which strategic investors (SIs) might be interested in the asset at the exit stage.” The official added, “Since SIs are willing to pay a strategic premium for assets with clear business synergies, this creates opportunities to recoup investments faster than expected, even for assets acquired only a few years ago.”