Tiger Alternative to offer $167 mn debt financing to US PEF

  • 2019-10-30

South Korean private equity firm Tiger Alternative Investors Co. Ltd. will offer a 150 million euro ($167 million) senior loan to Advent International Corp. for the acquisition of a German chemical company, following a string of debt financing it has provided to global private equity houses so far this year.

Tiger Alternative recently launched a domestic vehicle with a seven-year term to sell down the debt investment to domestic investors, according to investment banking sources on Oct. 27. Its target yields and other details were not immediately available.

In March, Advent International, a US private equity firm, announced that it had signed a definitive agreement to acquire Evonik Industries AG’s methacrylates business for 3 billion euros.

The products of Evonik’s methacrylates business are used in paints and coatings, construction, automotive and healthcare.

Tiger Alternative, with 2.4 trillion won ($2 billion) in capital commitments, has been aggressively chasing financing deals with global private equity firms since its inception in 2018.

In August, it reaped a 26.7% IRR on $35 million investment in a warehouse facility sold by the Carlyle Group.

After currency hedging and other expenses, Tiger Alternative pocketed more than 1.6 billion won ($1.4 million) in cash from the four-month investment, in addition to the principal.

A warehouse facility is short-term financing provided before the launch of a collateralized loan obligation.

In June, the South Korean PEF provided $100 million in debt funding for KKR’s $1.32 billion acquisition of Kentucky-based BrightSpring Health Services.

In July, it joined in the acquisition financing for Sweden’s construction products and tools distributor Ahlsell by providing an undisclosed amount of mezzanine financing to CVC Capital Partners.

The Swedish company was then valued at around $2.65 billion.

By Jinsung Kim and Hyun-il Lee

jskim1028@hankyung.com

<Edited by Yeonhee Kim>

(Photo: Getty Images Bank)