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Daewoo E&C headquarters in Euljiro, Seoul (Courtesy of Daewoo E&C) Daewoo Engineering & Construction Co. of South Korea and IMM Investment Global, the Hong Kong-based affiliate of Korean equity firm IMM Investment Corp., have jointly created a corporate partnership fund, or COPA fund. COPA funds are private equity funds for overseas M&As, with capital commitments from pension funds as financial investors targeting stable profitability.Daewoo E&C and IMM Investment Global will respectively commit $200 million to create a $400 million fund, the construction giant said on March 28. They aim for co-investments in cold chain logistics, environmental, social and governance and blue-chip infrastructure companies overseas.Daewoo E&C will particularly focus on Vietnam-based cold chain logistics as its new core business. The firm is planning to secure its capabilities for the industry value-chain in Vietnam, including land development, construction and management.“We are accelerating to find new business areas and technologies that align with paradigm shifts, such as the fourth industrial revolution, ESG management and carbon neutrality. Also, based on the recent takeover by Jungheung Group, we will strengthen strategic investment for further growth,” a Daewoo E&C official said. Jungheung completed merging Daewoo E&C in late February, with the acquisition of 50.75% for 2.1 trillion won ($1.7 billion).The construction company entered the Vietnamese market in 1991 with its Hanoi branch foundation. Since then, it has participated in a number of projects with a combined worth of $3 billion. In January, Daewoo E&C-led consortium signed a contract to develop the H1HH1 block in Starlake, a new urban town in northwestern Hanoi. The whole project will cost $185.5 million including constructing and operating a building complex. IMM Investment is managing 6.4 trillion won in assets, focusing on venture capital, mezzanine and infrastructure. It has proactively invested in Vietnam -- the PE firm invested $470 million in food conglomerate Masan Group Corp. in 2018 with Korea's National Pension Service and SK Group. In 2019, it invested $300 million in tech & industry giant Vingroup JSC Company with SK Group.By Sang-Mi Ansaramin@hankyung.comJihyun Kim edited this article.
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