Helios Private Equity (Helios PE) announced on the 26th that it will establish a 300 billion won-sized merger and acquisition (M&A) fund. Its primary investment areas are in the semiconductor, information and communication technology (ICT), and artificial intelligence (AI) sectors.
Helios PE was selected as the entrusted operation company (GP) for the M&A sector of the Korea Development Bank's recovery market activation support fund the previous day. Accordingly, it will receive an investment of 60 billion won from the Korea Development Bank. It is currently preparing for the review of the 'IBK Growth M&A Fund Phase 2' ongoing investment project at the Korea Growth Financial Corporation. It plans to support the upcoming investments from pension funds, mutual aid associations, and financial institutions to raise 300 billion won by the end of the year.
Helios PE plans to primarily discover succession deals due to the aging of the founders of small and medium-sized corporations. It also plans to engage in growth investments targeting competitive corporations in advanced industries.
The blind fund that Helios PE is establishing this time is the 10th fund. The 9th fund, which was formed in 2023 with a size of 107 billion won, has been over 70% utilized, prompting the formation of the 10th fund. The 9th fund invested in the security solution company Nets.
Helios PE achieved an internal rate of return (IRR) of over 15% after acquiring the telecom equipment company Innowireless in October 2018 and selling it to the LIG Group in 2022. In 2021, it acquired a 31.5% equity stake in ISC, a KOSDAQ-listed company, and sold it to SKC, yielding nearly double the revenue. Currently, the liquidation of the 3rd fund is underway, with an expected IRR of 45% and a multiple on invested capital (MOIC) projected to reach 3 times.