MBK Partners, the South Korean private equity firm set up by a former Carlyle executive, clinched its first Japanese deal with the acquisition of a software company for Y71 billion ($611m).

The private equity firm purchased Yayoi from Livedoor, the Japanese internet company that is being rehabilitated following its delisting from the Tokyo Stock Exchange over alleged falsification of earnings figures.
MBK financed a portion of the acquisition for Yayoi via borrowing from UBS.
The move marks the first leveraged buy-out in Japan following the credit crunch triggered by the U.S. sub-prime crisis. MBK is understood to have paid 18 times earnings before interest, tax and depreciation.
It marks the latest high-profile deal for MBK, which was set up two years ago by Michael Kim, a former Carlyle Asia chief, and has quickly established itself as a leading private equity firm focused on Northeast Asia.
Last year MBK acquired Taiwan's China Network Systems, a cable TV operator, and this week the Financial Times revealed that it is part of a consortium set to acquire a 30 percent stake in South Korea's second biggest cable television group.
Leveraged buy-outs rely on 65-85 percent debt to pay for the acquisition, and use the target's assets as collateral for the debt and its cash flow to repay it. This allows the private equity buyer to minimize its exposure while maximizing returns when the target is listed or sold on.
Foreign hedge funds and investors bought large shares in Livedoor just before it was delisted last year. By some estimates, the group is 50 percent held by foreigners. Shareholders have since demanded better returns, urging it to sell some non-core assets.
Livedoor purchased Yayoi for Y20b in 2004 from Advantage Partners. UBS advised Livedoor on the deal and also provided financing to MBK partners.
Separately, Woori Financial Group, South Korea's third-largest lender, said it was in talks with MBK to buy a controlling stake in Hanmi Capital. MBK is the largest shareholder in the consumer financing company with a 52.55 percent stake.
Woori said the move was part of its efforts to expand into the consumer financing business after it failed to take over Star Lease.
MBK bought the stake in Hanmi in 2006 from Citigroup's Korean unit for Won62.6b ($66.4m). Hanmi had an operating profit of Won11.8b on revenue of Won98.8b in the fiscal year to end March 2007.
(Source: The Financial Times