Park Jae-hyuk is a seasoned journalist who has provided comprehensive coverage of South Korea's corporate dynamics, economic policies, industry challenges and the global positioning of Korean companies. Based on the articles he has written since joining The Korea Times in 2016, his investigative approach has helped readers understand corporate governance, economic trends and business strategies shaping South Korea’s economy.
KKR betting more on Korea
KKR Co-CEO Joseph Bae
By Park Jae-hyuk
By Park Jae-hyuk
KKR is increasing its investments in Korea after Korean American co-President Joseph Bae was promoted to be one of two co-CEOs, succeeding the world's leading private equity firm's (PEF) co-founders Henry Kravis and George Roberts.
The U.S. investment firm said Bae and co-president Scott Nuttall were appointed co-CEOs as the two co-founders have stepped down. The changes have been expected since Bae and Nuttall began to serve as the firm's co-presidents in 2017.
“As a team, we are deeply honored to be stewards of the capital of our clients and shareholders and, with our partners, to lead the talented team of employees who collaborate to deliver for them every single day,” the new co-CEOs said in a statement.
A day after KKR's announcement, SK E&S said the foreign PEF was selected as the preferred bidder to invest 2.4 trillion won ($2 billion) in its redeemable convertible preferred stock adding an agreement will be signed later this month.
Bae is said to have directed his firm's team involved with the deal, to beat out three other bidders ― IMM Private Equity, IMM Investment and EMP Belstar. SK E&S attributed its decision to KKR's satisfactory proposal, although specifics were kept confidential.
Market participants expect Bae's interest in investing in the country he was born in will prompt a massive inflow of cash into the Korean capital market.
The 49-year-old, who also has a Korean name, Bae Yong-bum, moved from Korea to New Jersey with his family when he was three years old. After graduating from Harvard, he worked for Goldman Sachs and joined KKR in 1996.
He first drew attention in Korea for playing a key role when KKR made hefty profits by selling Oriental Brewery to AB InBev for $5.8 billion in 2014, after buying the Korean firm for $1.8 billion in 2009.
Since then, he has maintained close relationships with Korean businesspeople including Shinhan Financial Group Chairman Cho Yong-byoung. In April, he also disclosed KKR's plan to increase its investments in Asia saying the region was still “under penetrated” for private equity.
The firm's Seoul office has been reinforced with experts in infrastructure investment and has bought multiple waste management companies here.
Over the past few years, Koreans and those of Korean descent have smashed the “bamboo ceiling” in the global capital market including Wall Street, which up until recent times showed an under-representation of Asians and Asian Americans in executive positions.
Korean American Kewsong Lee was appointed the sole CEO of Carlyle last year following the sudden retirement of co-CEO Glenn Youngkin. Blackstone CFO Michael Chae has also been tasked with directing the firm's investments in the rapidly growing Asian capital market.
Last month, the Canada Pension Plan Investment Board promoted its Asia Pacific head Suyi Kim to global head of its private equity department, where she will lead a team that was managing $100 billion in assets as of March 31 this year.