Darby exits Korean Leadcorp

The exit is the firm’s fifth from its $254m Darby Asia Mezzanine Fund II vehicle. 

Darby Private Equity has exited its investment in Korean consumer finance company Leadcorp, the firm announced in a statement on Tuesday. Franklin Templeton Investments’ private equity arm made the investment through Darby Asia Mezzanine Fund II.

Darby’s equity stake in the company was exited through sales on on the KOSDAQ Market of Korea Exchange. Senior secured notes the fund issued to Leadcorp were repaid in April. Leadcorp represents the 2005 vintage vehicle’s fifth exit, said Darby senior managing director David Hudson in a statement.

A firm spokesperson declined to disclose return information on the investment. 

Darby’s 2007 investment in Leadcorp took the form of senior secured notes and common shares. It later II invested in senior secured notes issued by Leadcorp in October 2010 and December 2011.

Those investments helped the company expand its core consumer finance business.

DAMF II, a $254 million fund, has made 11 investments since inception, according to Darby’s website. The fund includes commitments from Ardian, the Asian Development Bank, China Investment and Finance Limited and Mizuho Corporate Bank, according to Private Debt Investor’s data and analytics team.

Darby was founded by former US Secretary of the Treasury Nicholas Brady in 1994. The firm became a subsidiary of Franklin Templeton Investments in 2003.