Shinhan Investment manages $120 mn financing in Baring PE¡¯s HGS Healthcare buyout

Shinhan Global Investment Banking (Shinghan GIB), an investment banking unit of South Korea¡¯s Shinhan Financial Group, has arranged $120 million in mezzanine financing to back Baring Private Equity Asia-led deal to buy a healthcare solution provider with an enterprise value of $1.2 billion.

According to sources in the investment banking industry, Shinhan GIB as an underwriter sold $120 million mezzanine fund to investors in Korea and abroad to back the acquisition of HGS Healthcare LLC. led by Baring Private Equity Asia in Hong Kong.

HGS Healthcare offers payment, membership acquisition, billing, benefit set-up and claims and appeals services to major insurance companies in the United States, the Philippines, India and Jamaica. It has seen significant growth in earnings despite the pandemic.

Shinhan GIB has been building up credentials in buyout financing. Recently, it succeeded in pooling funds for the acquisition of TEEG, a leading indoor entertainment company in the Asia-Pacific region.

It also took part in the M&A deal of Certius Tech, a US healthcare IT company, as the sole underwriter of the mezzanine loan. It is striving to strengthen its competitiveness in the acquisition financing industry, mainly in the Asia-Pacific region.

Other Korean investment firms, such as Korea Investment & Securities and NH Investment & Securities, have been eager in overseas acquisition financing market to diversify their profit sources.

Last year, Korea Investment & Securities pooled 150 billion won ($125.9 million) worth funds for the EQT Partners-led 6.3 billion euros ($7.2 billion) deal to buy a Swedish quarantine company. NH Investment & Securities also took part in Carlyle Group¡¯s acquisition of Flender from Siemens with a 300 billion won fund.

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