Hahn & Company seeks new owner for K Car Capital

K Car Capital CI

Private equity firm Hahn & Company is moving to sell K Car Capital, its auto financing subsidiary, according to investment banking sources on Wednesday.

The Seoul-based PEF manager is currently in talks with multiple potential buyers without appointing a sale advisor, pursuing direct negotiations instead. Several financial firms—including NH NongHyup Financial Group, the parent company of NH NongHyup Capital—are reportedly showing interest in acquiring K Car Capital.

Hahn & Company entered the used car business in 2017 by acquiring SK encar’s directly operated division (later renamed K Car) for about 200 billion won ($147 million). The following year, it purchased CJ Joy Rent-a-Car for 50 billion won, quickly expanding into car rental and distribution.

To support installment financing for used car purchases, the PEF established K Car Capital as a wholly owned subsidiary under a special purpose company (SPC) set up by one of its funds.

The firm listed K Car on the KOSPI in 2021, recovering most of its initial investment. If the sale of K Car Capital goes through, it would mark the completion of Hahn & Company’s investment cycle—from brand development to IPO and eventual divestment—drawing attention as a model case of strategic exit planning.