The Korea Development Bank has chosen its first investment from its recently launched turnaround private equity fund. KDB has acquired sewing machine maker Sunstar Precision, according to reports.
The fund, which aims to rescue ailing small companies by injecting fresh capital in to them and selling them back to their owners once turned around, has taken Sunstar Precision’s existing shares as well as newly issued ones.
KDB plans on merging the company with its affiliate Sunstar Machinery Co.
The Sunstar companies, whilst holding strong positions within their market, struggled last year due to losses related to foreign exchange rates.
KDB is reportedly planning to expand its KRW100 billion ($79.9 million) turnaround fund to KRW1 trillion later this year.
D.C.