Zephyr Korea Fund

Summary

Zephyr Korea, L.P. (ZK) was formed in December 1996 to participate in what Zephyr had identified as an increasing trend towards deregulation of the Korean capital markets and the adoption by Korean businesses of Western-style corporate practices such as focused and profit-oriented management and transparent governance.

Investment strategy and objectives

ZK sought to achieve significant capital gains by making privately negotiated equity investments in small and medium-sized Korean companies and by purchasing interests in existing Korean private equity funds at a discount to net asset value in the secondary market. ZK initially focused its investment activities on expansion and replacement capital investments in computer-related services and applications, telecommunication service providers and suppliers, information distribution companies (multi-media and internet-related), education related businesses and other non-conglomerate dominated niches, such as environmental control services and products. In response to a declining economic environment in Korea and further deregulation of foreign ownership rules, ZK focused its later investment activity on purchasing control positions in companies requiring substantial debt reduction and/or financial restructuring as well as on purchasing affiliate spin-offs of Korean conglomerates. ZK completed divestment of its holdings in March 2000.

Zephyr Korea Fund is currently closed and no longer accepting subscriptions. Information relating to Zephyr Korea is provided solely for the purpose of describing Zephyr Management L.P.’s global capabilities.

Please note that offices and staff include affiliates and the AUM calculation includes assets attributable to Zephyr's joint venture funds.