JKL Partners proves its exit credentials with back-to-back deals

For JKL Partners, this year has been one of proving its worth through exits. Amid an uncertain capital market environment, the firm pulled off two major divestments in the span of half a year, turning its exit clock at a rapid pace.

Its subsidiary JKL Investment — formerly JKL Credit Investment — also made its presence felt, delivering visible results across investment, exit and fundraising activities that lifted the entire house's growth momentum.

The first major achievement was the sale of laundry franchise company Cleanwrap.

JKL Partners completed the sale of its entire stake in Cleanwrap to Stic Investments in February for approximately 630 billion won ($463 million). The deal came roughly four years after JKL acquired a 100 percent stake from Cleanwrap founder Chairman Lee Beom-taek and related parties for about 190 billion won in August 2021, a result widely regarded as an exceptional return on investment.

Behind the large-scale exit was a precisely executed value enhancement strategy. JKL Partners aggressively expanded Cleanwrap's business model beyond its original business-to-consumer focus into the business-to-business space. Through bolt-on acquisitions — including hotel laundry specialist Cleanwash — the firm broadened the company's operational pillars well beyond clothing care into logistics and hospitality.

JKL Partners also pushed franchise expansion, launched new consumer-facing services such as garment storage and laundry pickup and delivery, and accelerated digital transformation. Under its stewardship, Cleanwrap overhauled its core business and broke into the B2B market simultaneously, cementing its position as the undisputed leader in the domestic laundry industry.

Hot on the heels of Cleanwrap, JKL Partners is also nearing the exit of aircraft parts manufacturer Yulgok.

A consortium of JKL Partners and WJ Private Equity signed a share purchase agreement with VIG Partners in August for the sale of Yulgok. The deal combines the consortium's 47.09 percent stake with a portion of the 47.23 percent stake held by founder and largest shareholder Wi Ho-cheol, with the combined shares to be transferred to VIG Partners. The transaction values the company at more than 400 billion won on a 100 percent equity basis.

The JKL-WJ consortium first acquired a portion of Yulgok's existing shares in late 2019, then took on 40 billion won worth of convertible preferred shares in 2020, becoming the second-largest shareholder. Completing this deal marks a successful exit timed to the recovery of the aviation manufacturing sector.

Market attention now turns to Lotte Non-Life Insurance, a key financial asset in JKL's portfolio. The firm is currently pursuing a sale process for the insurer. With its deal management capabilities under the spotlight, the question is whether JKL can replicate the exit track record it demonstrated with Cleanwrap and Yulgok.

JKL Investment, the other pillar of the house, has also grown in stature. In the first half of this year, the firm rebranded from JKL Credit Investment and expanded its investment spectrum beyond credit into structured investments, mezzanine financing and growth capital.

A prime example is its investment in Pluglink, an electric vehicle charging platform company. JKL Investment injected an additional 20 billion won into Pluglink in February — just a year after making an initial investment of 45 billion won last year — reflecting strong confidence in the company's rapid growth and competitive position.

The subsidiary also recorded exits. In the case of Sama Aluminium, a manufacturer of aluminum foil for secondary batteries, JKL Investment converted 10 billion won worth of convertible bonds it held into 411,539 common shares earlier this year, then sold the entire position on the open market, wrapping up the investment in roughly three years.

New fundraising efforts are also gaining momentum. JKL Investment had been managing a 350 billion won future mobility fund, with its core assets centered on companies across the mobility ecosystem — including electric and hydrogen vehicles and batteries. Following its rebranding, the firm launched efforts to establish a new blind fund, drawing on the investment experience it built in the mobility sector.

JKL Investment was selected as a discretionary manager for Korea Growth Finance Investment Management's zero-emission vehicle infrastructure fund program last month, securing 20 billion won in anchor capital. Building on that, the firm plans to close its first new blind fund at around 50 billion won and continue expanding investments in eco-friendly infrastructure such as electric vehicle charging.