AlpenRoute Asset Management seeks to sell stakes in Market Kurly for liquidity

South Korea’s AlpenRoute Asset Management that recently suspended redemption of 230 billion won ($193 million) worth funds is readying to sell its stake in Market Kurly, a fast-rising local online grocery store.

The private equity fund reportedly is preparing to sell its stake in Market Kurly to resolve liquidity problem caused by recent withdrawal requests from investors who became increasingly wary after losing big from Lime Asset Management’s massive suspension of fund repayments, according to industry sources on Tuesday.

AlpenRoute specializes in investing in promising local startups. It is the second shareholder of Market Kurly, holding a 21.5 percent stake as of 2018. Its share reportedly dropped slightly after Market Kurly raised series D investment of 135 billion won from investors including Chinese private equity fund Hillhouse Capital in May last year. The details on the share ownership change are to be disclosed to the public in April.

Late last month, AlpenRoute announced it decided to suspend redemption from some of its pre-initial public offering (pre-IPO) funds and open-end funds, worth 2 billion won in total after it became short of capital with some brokerage agents rushing to redeem payment. Following the announcement, a rumor started to circulate that AlpenRoute would sell off its stakes in ventures including Market Kurly and K-pop superstar BTS’s agent Big Hit Entertainment.

The private equity manager, however, denied the connection between its sale of Market Kurly shares and fund withdrawal suspension. “Market Kurly shares are locked in closed-end funds, not in open-end funds that investors can request redemption,” said an AlpenRoute official who asked to be unnamed. “AlpenRoute’s sale of Market Kurly shares was previously planned and has nothing to do with freezing repayment of open-end funds.”

The AlpenRoute official added the company sought to sell Market Kurly shares to offshore investors but decided to hold off the plan recently on an expectation of the online grocery store winning new investment. Market watchers are anticipating Market Kurly to raise additional investment worth 1 trillion won in the first half of this year after it successfully achieved the business targets proposed by investors last year.

Market Kurly is one of the country’s leading online grocery stores that is best known for early morning door-to-door delivery service of fresh food. Its market capitalization is estimated at between 420 billion won and 530 billion won, based on total 21,274,850 shares issued as of April 2019 at current estimated price of 20,000 won to 25,000 won apiece.

Sophie Kim, Market Kurly founder and chief executive officer, said AlpenRoute has notified her of its plans to sell Market Kurly shares. “This is not related to management rights whatsoever,” she said. Kim is the largest shareholder of Market Kurly with a 27.94 percent stake as of 2018.

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