Samsung to invest in Rothschild PEF

Samsung Securities and Samsung Life Insurance will invest tens of billions of won in a private equity fund (PEF) set up by Rothschild Merchant Banking, the private equity investment arm of Rothschild Group. The securities affiliate of Samsung Group said that the British financial company will run the PEF, which will target undervalued European companies.  "We are in talks with Rothschild over investing in a PEF of Rothschild. We will invest with (Samsung) Life Insurance, and the size will be less than 100 billion won," said Ha Jung-seok, a spokesman of Samsung Securities.  This is the first time that Korean financial companies have invested in a PEF of the British financial group, if the deal is completed.  Ha, however, said that the company did not decide yet when and how much the company will invest in the company. Rothschild is contacting other investors to draw money into the fund, he said.  The Rothschild PEF will eye European companies in trouble and buy them out later after restructuring, Samsung said.  Samsung Securities and Rothschild have cooperated in several mergers and acquisition (M&A) deals, including Mahindra's acquisition of Ssangyong Motor in 2011 and NHN Japan's purchase of Japanese portal site Livedoor in 2010. Rothschild Merchant Banking manages in excess of 3.4 billion euro, according to the company.  Its capital originates from Rothschild Group, and its senior executives, institutional and private clients come from across the globe. The buyout company's core market is Europe, where it has an edge in identifying superior equity and debt investment opportunities, typically in the mid-market area.  Rothschild is one of the world's largest independent financial advisory groups, employing approximately 2,800 people in 40 countries around the world.  Rothschild provides strategic, M&A, wealth management and fundraising advice and services to governments, companies and individuals worldwide. It is a global financial advisory group which is family controlled and independent. It has been at the center of the world's financial markets for more than 200 years.