Sunday, January 15, 2017

Private Equity Targets Korea

Private equity underwriters (PEU) have Korea in their sights for expansion.

Korean firms that hold a competitive edge against their peers and capability to generate ample cash from running their business are attracting global PEUs. In addition, the weakening Korean won against the U.S. dollar that lowers the prices of company stakes in dollar term is expected to further encourage global PEUs to seek investment targets in Korea.
Ample cash is needed to cover deal fees, rising interest expenses, annual management fees and assure debtholders who may fund the next massive PEU dividend.

What happens when private equity becomes ubiquitous in Korea?  How stagnant will wages have become?  How much will their middle class have shrunk?