It has been confirmed that MBK Partners, the largest private equity fund manager in Northeast Asia, successfully defended its investment performance in its recently released annual report. Despite losses from the Homeplus investment last year, it recorded high returns in the Japanese and Hong Kong markets and distributed dividends to domestic and international investors (LPs) at a level reaching $1.7 billion. This figure represents a significant increase from $1.2 billion in the previous year and is evaluated as having maintained investors' trust even in difficult market conditions. Chairman Kim Byeong-ju emphasized through his annual letter the continued boom in the Japanese market, industrial restructuring through technology adoption, and opportunities in healthcare and elderly care due to demographic changes, stating that attractive investment opportunities have been identified.
MBK Partners' annual letter is evaluated as an important benchmark playing a barometer role not only for domestic pension funds but also in the global investment industry. Since its establishment in 2005, with cumulative returned capital exceeding $21 billion, MBK has established itself as a top-tier leader in the Asian private equity industry. Chairman Kim Byeong-ju noted that the legal administration application of Homeplus, a portfolio company, became a test of public scrutiny, regulation, and legal investigation, and he urgently felt the need to find a balance between Western investment principles and Asian social responsibility while running the company. Although the authorities confirmed that the company did not commit illegal acts, this served as an opportunity to once again recognize the importance of socially responsible management.
Dividends returned to LPs through investment recovery last year increased significantly to $1.7 billion compared to the previous year. Major achievements include the recovery and recapitalization of Japan Well-being and Kuroda Group in the Japan silver care company sector, HKBN in the Hong Kong telecom sector, Dongjin Fiber in the domestic sector, Sianli in the Chinese aesthetic sector, and CAR in the car rental sector in the buyout sector. Additionally, in the special situations sector, Bohai Rising in the Hong Kong leasing company sector, SK On, and JBR in the Japanese life support company sector were also recovered. Especially, the fund No. 3 including Homeplus maintained a favorable level with an annual return rate of 15.4% last year, and the return multiple of 2.1 times compared to the investment principal is the highest level among the company's buyout funds. It succeeded in defending returns by selling HKBN shares, and domestic M&A investment assets also contributed to maintaining high returns.
Chairman Kim Byeong-ju emphasized future investment directions such as the continued growth of the Japanese market, the adoption of AI technology, the healthcare and elderly care sectors, and opportunities in private credit and hybrid capital. He declared his determination to become a champion of social responsibility at the end of his annual letter while focusing on providing long-term returns. It appears that he emphasized socially responsible management in consideration of public criticism after the Homeplus incident. Additionally, the buyout fund No. 6 was finally formed at a scale of $5.5 billion, and the reinvestment rate of major investors reached about 80%, attracting high interest. We will continue to achieve sustainable growth while seeking future investment opportunities along with the growth trend of Asian markets such as Korea and Japan.