About Anchor Equity Partners
Anchor Equity Partners is a private equity firm specializing in middle-market and consolidation investments. The firm targets investing in growing opportunities in Korea. The firm focuses on investments of more than $50 million in its companies.
Anchor Equity Partners Headquarter Location
Latest Anchor Equity Partners News
Sep 2, 2020
2020-09-02 South Korea’s e-commerce platform TMON Inc., a majority owned by KKR & Co. and Anchor Equity Partners, will likely receive 400 billion won ($337 million) in new investment from Seoul-based private equity firm PS Alliance. The fresh funding is expected to pave the way for TMON to go public next year, which may lead to the top shareholders’ exit from the loss-making online retailer in over five years. Both KKR and Anchor Equity are in final stages of talks with PS Alliance to sell 400 billion won worth of new bonds convertible into shares in TMON, short for Ticket Monster, according to investment banking sources on Sept. 2. The fundraising is part of TMON’s efforts to become the country’s first listed e-commerce platform. In 2017, it withdrew the IPO plan due to poor financial conditions. To revisit the initial public offering, TMON picked Mirae Asset Daewoo Securities Co. Ltd. as the IPO underwriter in April. Since then, it has been seeking to raise up to 300 billion won through a rights offering, at the request by the Korea Stock Exchange to bolster its negative capital base. But the capital-raising plan has received a cool response from investors and large business groups who believed the country’s online commerce market has been entering the mature stage after the so-called chicken games ended. Given that concert and travel ticket sales account for 30% of its revenue, TMON has not benefited as much from the non-contact business boom since the coronavirus outbreak as rival companies. RELIEF PICTHER AS CONTRARIAN? But South Korea’s PS alliance has a contrarian view, betting on TMON’s growth in a smaller segment in the e-commerce market alongside its improving financial conditions. TMON abandoned loss-making businesses such as fresh food sales last year. Instead, it narrowed its focus and adopted aggressive marketing. To differentiate itself from bigger rivals such as Coupang Corp. and eBay In., TMON has introduced the marketing concept of “Time Commerce” in which it sells products at clearance prices during a certain period of time. It turned to the black in March for the first time in its 10-year history. During the second quarter ended in June, it beat rival Wemakeprice, a Korean unicorn or a private company with a value of over $1 billion, in terms of customers. The number of TMON’s customers has risen to 11 million. To increase the number of loyal customers, it will offer double discounts and high points or rewards under the customer loyalty program. PORTFOLIO OF PS ALLIANCE As a condition to invest in TMON, PS Alliance has secured the drag-along rights to sell its stake on the same terms as both KKR and Anchor Equity later on. PS Alliance is raising money from domestic institutional investors to fund the investment. Thanks to the high target return of 15% it offered, the project fund was overbooked by institutional investors, the sources said. In 2015, KKR and Anchor Equity jointly took a majority of TMON. Their detailed ownership was not disclosed. If the fundraising from PS Alliance goes through, the deal will mark the first of such kind to be sealed between foreign and domestic private equity firms. PS Alliance was formed in 2012 as a wholly-owned unit of South Korea’s Poongsung Group, an automotive and electronic parts maker. It acquired a stake in a Korean storage tank rental company in 2014 and Korea Rental Corp. which rents IT Equipment such as desktops, laptops, printers and mobile devices in 2019. Young Min Cho, who joined PS Allianc as vice president in April, served as a bridge between his company and the foreign private equity houses. During his stints at Korean Teachers’ Credit Union and Glenwood Private Equity as a structured finance expert, he had managed the investments in ADT Caps, Toshiba Memory, Halla Cement, Hankuk Glass Industres and SKC Kolon PI. TMON reported a net loss of 118.8 billion won last year, versus the 136.3 shortfall a year earlier. By Chaeyeon Kim and Sang-eun Lucia Lee email@example.com
Anchor Equity Partners Team
1 Team Member
Anchor Equity Partners has 1 team member, including current Managing Partner, Sanggyun Ahn.