South Korean private equity firm Tcha Partners Asset Management has closed a 380 billion won ($250 million) continuation vehicle for its portfolio of quasi-public bus operators, becoming one of the country’s largest transactions of this nature this year.
The continuation vehicle, ESG Public Mobility Private Equity Fund, brings in South Korea-based Greenwich Private Equity as co-general partner, allowing Tcha to retain ownership of the platform while providing liquidity options for existing investors and fresh capital to support future growth, according to a release from BDA Partners, which advised on the transaction.
The deal consolidates 16 bus operating companies across Seoul, Incheon and Daejeon into a single investment platform. Existing investors rolled over their stakes from Tcha’s legacy funds, while new limited partners committed fresh capital alongside acquisition financing to fund the transaction.
The platform acquired the underlying bus operating companies through a combination of acquisition financing, new third-party capital commitments, and rollover reinvestments from existing investors in the legacy funds.
Tcha began investing in South Korea’s quasi-public bus sector in 2019, building the platform through a series of acquisitions under a buy-and-build strategy. The business operates under the country’s quasi-public bus system, where operators receive government-regulated cost recovery and returns, generating infrastructure-like cash flows.
Tcha and Greenwich plan to expand the platform through operational improvements and selective acquisitions.
The transaction adds to a growing number of GP-led continuation vehicles in Asia, as private equity firms seek alternatives to traditional exits amid a slower mergers and acquisitions market and subdued initial public offering activity. Continuation funds allow sponsors to retain high-quality assets for longer while offering existing investors the option to cash out or roll their investments into a new vehicle.
“The transaction represents one of the first GP-led secondary/continuation fund structures in Korea, highlighting the sophistication of the Korean private capital markets. It’s a privilege to be part of this journey,” said Paul DiGiacomo, Managing Partner and Head of Financial Sponsors, BDA.
