KDB Capital forms alliance with Harvest Equity Partners raising US90.31 million for DS Liquid stakes

KDB Capital, run by state lender Korea Development Bank has occupied an aluminium recycling company, DS Liquid, in collaboration with local private equity fund (PEF) Harvest Equity Partners in order to enhance its ESG portfolio. KDB, along with the newly established Harvest Equity firm, raised a fund of 130 billion won or US$90.31 million.

This fund was then used to purchase a 100 per cent stake in DS Liquid, changing the ownership quotient of the enterprise. This entire investment was supported by other regional PEF and AVES partners.

DS Liquid was founded in 2005 with the major motive of processing aluminium waste and recycling it as raw material. The company’s operating profit multiplied to 12.8 billion won in 2021 from 5.4 billion won collected the year before. The firm’s revenue also shot up 40 per cent to 107.3 billion won from 75.7 billion won at the above-mentioned time frame.

The aluminium recycling unit’s gross collection before the deduction of interest, taxes, depreciation and amortization (EBITDA), which is crucial in determining a company’s market value, closed at 26 billion won the previous year.

The KDB Capital and Harvest Equity Partners axis, while acting as the company’s latest investors, have estimated a raised EBITDA data of 40 billion won this year, which is 1.5 times higher than last year.

This taking over of DS Liquid justifies KDB Capital’s desire to invest more in ESG projects aligned with the eco-friendly movement emerging worldwide.

KDB Capital has recently invested 140 billion won in partnership with Woori Private Equity to enhance renewable energy operations like solar energy by Hanwha Energy’s Australian business.

The demand for recycled raw materials is growing with the passing years globally. The worldwide aluminium market has been developing at a rate of 3 to 5 per cent each year for the last ten years.

Various protocols from around the planet, such as the U.S. Inflation Reduction Act (IRA) that curtails the use of critical minerals from China and the European Union’s latest Battery Regulation, which sets a minimum need for the amount of recycled raw materials in batteries are also going to be the primary reasons for the growth of recycling end-of-life products in bulk.

source https://www.alcircle.com/news/kdb-capital-forms-alliance-with-harvest-equity-partners-raising-us90-31-million-for-ds-liquid-stakes-84714