The private equity fund management company KCGI noted that a consortium formed with Mirae Asset Global Investments' private equity division completed its investment by paying the $200 million (about 290 billion won) subscription price for new shares of Essex Solutions, the global leading provider of wire wound products, on the 5th.
Through this investment, the consortium acquired approximately 21.1% equity in Essex Solutions, an overseas subsidiary of LS Group. The corporate value of Essex Solutions, as assessed through this investment, amounts to $950 million (about 1.4 trillion won).
To facilitate this investment, the consortium established the "KCGI-Mirae Asset Global Energy ESG Private Equity Fund (hereinafter PEF)." The core management personnel of the PEF consists of a total of five individuals: CEO Seong-bu Kang and Deputy CEOs Jun-taek Jung and Hyun-cheol Im from KCGI, as well as Department Head Joong-kyu Bae and Head of Team Young-hyun Gong from Mirae Asset Global Investments.
The main limited partners for the PEF include the National Teachers' Pension (교직원공제회), MG Saemaul Geumgo, and Korea Securities Finance. Institutional investors reportedly gained confidence in the corporation's competitiveness after conducting local due diligence at Essex Solutions' headquarters in Atlanta and key manufacturing sites. Previously, KCGI was selected as the preferred bidder in August 2024.
Essex Solutions is the world's largest provider of wire wound products, with bases across North America, Europe, and Asia. Wire wound products serve as materials that facilitate the conversion between electrical and kinetic energy. They are used in traction motors for electric vehicles and ultra-high voltage transformers.
Essex Solutions plans to select an underwriter for its public listing within the year and aims to pursue an initial public offering (IPO). The company is considering listings not only on the KOSPI but also overseas. Essex Solutions intends to use the $200 million from this pre-IPO funding as investment capital for growth in 2025-2026.
KCGI plans to continue collaborating with Essex Solutions and LS Group in the future. Additionally, the firm aligns with LS Group's selection of the battery, electric vehicle, and semiconductor businesses as future growth drivers through 'Vision 2030' and intends to actively support LS Group in securing new sources of growth in various ways.