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H&Q Asia Pacific exits South Korean financial services investment

Palo Alto-based Hambrecht & Quist Asia Pacific has made a successful exit from its investment in financial services company Good Morning Securities. The landmark transaction represents the first time foreign investors have acquired and profitably exited a major South Korean company.

H&Q Asia Pacific has sold its stake in the company to strategic buyer Shinhan Financial Group, realising proceeds of $200m on a $30m initial investment.

H&Q Asia Pacific led the $72.5m acquisition in late 1998 in what was the firm's first Korean investment at the time. The consortium will retain a five per cent stake in Good Morning Securities.

‘This is a successful execution by H&Q Asia Pacific of a textbook corporate restructuring strategy,' said Ta-lin Hsu, founder and chairman of H&Q Asia Pacific. ‘Given our deep roots in the Asia Pacific region combined with US-style private equity experience, we were quickly able to parlay our expertise into South Korea when its economy went into crisis mode in 1997.'

The Good Morning exit provides hope to Carlyle Group and JP Morgan Partners, who recently teamed up on a $1.5bn deal to acquire 80 per cent of Korean company Tumho Tire.

H&Q Asia Pacific has also announced the appointment of Sean Warren as chief operating officer and managing director. Based in the firm's Palo Alto headquarters, Warren's newly created position will have broad responsibility for finance, admin, fundraising and investor relations.

Warren joined H&Q Asia Pacific from Robertson Stephens Asset Management where he was also chief operating officer. He previously served as general council and managing director for Soros Fund Management.

H&Q Asia Pacific currently manages $1.6bn of assets and has offices in Bangkok, Beijing, Hong Kong, Manila, Seoul, Singapore, Taipei, Tokyo and Palo Alto. The firm invests in a range of sectors including technology, manufacturing, consumer products and financial services companies throughout the Asia Pacific region.

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