Michael ByungJu Kim, co-founder of MBK Partners, highlighted South Korea and Japan as top buyout markets in Asia, with China also showing significant mid- to long-term private market potential, in his annual letter to shareholders. Despite the allure of India, MBK’s focus remains on Korea, Japan, and China. Last year, the firm invested USD3.6bn, generating substantial value in buyouts and special situations, and distributed USD412m, mostly through sales and recapitalizations. Kim emphasised Korea’s high PE penetration and the discount at which investments are made there. In Japan, governance and shareholder activism create opportunities for buyouts. MBK’s active funds reported a 1.9-times multiple of capital and a 20.5% internal rate of return as of the end of 2023, with over USD30bn in managed capital.