Alchemist Capital Partners Korea (hereinafter Alchemist), a private equity fund (PEF) management company that gained attention for acquiring SK TNS, a lucrative subsidiary of SK Group, is now facing a management vacuum. Following the sudden death of its real owner, CEO Eun Jin-hyeok, conflicts have erupted among the management over the company's operational rights. Their management dispute is expected to escalate into a legal battle.
According to investment banking (IB) industry sources on the 9th, conflicts among Alchemist's management have recently escalated into a lawsuit. It has been confirmed that CEO Kim Myung-soo, who was appointed to the position in May, filed a motion for a provisional injunction against former CEO Lee Jae-kyung, who in turn has also sought a provisional injunction against Kim.
Alchemist is a PEF management company established by former CEO Eun, who previously served as the president of Intel Korea. Eun formed a connection with SK Group in 2005, when Macquarie Securities, where he was employed at the time, acquired SK E&S, and later founded Alchemist, receiving support from SK Group in the process of identifying investment opportunities and securing funding.
Former CEO Lee Jae-kyung, known as a key figure who joined as a founding member of Alchemist and took on significant deals, is a financial expert with experience at Daiwa Securities and Credit Suisse. He also led the acquisition of SK TNS, a prime subsidiary of SK Group, in 2021. He became a CEO in 2018 and served as a co-CEO with Eun from 2023.
The conflict between the two current and former executives stems from the sudden death of Eun in January. Following Eun's death, the vice president in charge of investments at Alchemist initiated the process for Lee's dismissal. It is reported that an employee at Alchemist secretly removed the company seal from the premises to facilitate the dismissal of Lee as an internal director.
CEO Kim Myung-soo was appointed as the new CEO in May. Initially, he served as a co-CEO with former CEO Lee, but became the sole CEO after Lee's dismissal was finalized on June 24. A motion for a provisional injunction against Kim was also filed during the process of Lee's dismissal.
It is reported that Lee's side believes that his dismissal as CEO was carried out illegally and is currently pursuing a motion for a provisional injunction against Kim's actions. Additionally, Lee is said to be planning to file a criminal complaint for document forgery along with a motion for confirmation of his rights.
Some sectors of the industry have raised concerns regarding Kim's 'qualification controversy'. Typically, a PEF management company representative is expected to have more than five years of investment experience and expertise in accounting, law, and asset management, but it is noted that Kim's eligibility cannot be verified. It is understood that Kim has been a financial officer at Solomon Savings Bank and in the information technology (IT) sector.
Concerns among investors (LPs) are also growing as the conflict between the current and former management deepens. This is due to the participation of SK Ecoplant, the Saemaul Geumgo, and the Science and Technology Credit Guarantee Fund as investors in the project fund 'Network Infrastructure Service' used for acquiring SK TNS. Notably, Lee was a key operational figure in the Network Infrastructure Service.
Alchemist claims that Lee's dismissal was the will of the shareholders. Alchemist has a 100% equity stake held by Alchemist Capital Partners Fund Management (ACPFM), a shell company based in the Cayman Islands, with former CEO Eun Jin-hyeok utilizing ACPFM to maintain control over Alchemist.
Some speculate that Eun's family may have chosen Kim over Lee. Eun had two children with his spouse. However, considering that the shareholder change process for a paper company in the Cayman Islands takes over a year, it is likely that Eun remains the shareholder of ACPFM.
In response, the new CEO Kim stated in a call with ChosunBiz, 'I have nothing special to say regarding the recent management conflicts,' while addressing the market's controversy over qualification by saying, 'I possess sufficient qualifications to lead Alchemist as a PEF management company.'