Mubadala Investment Company plans to invest around USD 400 mn in South Korean mobility platform Kakao Mobility via a consortium led by Seoul-based private equity firm VIG Partners, investment banking sources told The Korea Economic Daily. VIG is looking to acquire a 40-49% stake in Kakao Mobility, the country’s largest taxi-hailing platform. Goldman Sachs is reportedly investing USD 300 mn through a separate vehicle.

Including Goldman’s investment, VIG plans to inject between some USD 1.4 bn into Kakao Mobility, with approximately USD 750 mn of that coming from acquisition financing. Korea Development Bank, Shinhan Bank, Woori Bank, and Kiwoom Securities are arranging the acquisition financing. The firm will also utilize its blind pool fund.

It’s not clear whether Goldman Sachs and the VIG-led consortium are co-investing or if Goldman is gunning for a separate stake.

Kakao Mobility’ current stakeholders include: Kakao Corp., which holds a 57.2% stake, as well as TPG (29%), Carlyle Group (6.17%), LG Corp. (2.46%), and Google (1.52%).

While VIG aims to close the investment by the end of May, hurdles remain. Key concerns include skepticism from investors about Kakao Mobility’s valuation—estimated at around KRW 6 tn (USD 4.3 bn)—and difficulties securing exit agreement terms with shareholders. Kakao, the operator of KakaoTalk, rejected a management buyout proposal from VIG.

Gulf sovereign wealth funds are showing increased interest in South Korean investments. The UAE committed USD 30 bn in Korean investments via Mubadala and launched a UAE-Korea Sovereign Investment Partnership with Korea Development Bank. Over in Riyadh, SVC and PIF’s Jada are backing a USD 160 mn startup fund that aims to invest in both South Korean and Saudi startups.

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