Stanchart invests in Korean water treatment company(5)

The private equity arm of Standard Chartered is backing the growth of Environmental Facilities Management with a $40m investment of which $8m will be used to fund acquisitions.

Standard Chartered Private Equity has invested $40 million in Environmental Facilities Management (EFMC), a wholly-owned subsidiary of Kolon Group, a Korean conglomerate.

The firm has acquired a 40 percent stake in EFMC for $32 million and it will invest an additional $8 million to expand the business. The investment will help the company identify new investment opportunities in the environmental sector both in Korea and globally.

Joe Stevens, global head of principal finance at Standard Chartered, said in a statement that the firm invested in EFMC because of its advanced technologies and deep knowhow in water-related businesses.

Established in 1998, EFMC started operations as a facility manager and became part of the Kolon Group in 2007. It specialises in water treatment and presently manages more than 75 water treatment facilities in Korea.

In April, Standard Chartered Private Equity invested an undisclosed sum in Man Infraconstruction, an Indian construction company. Two months prior to that, the firm invested up to A$80 million ($57 million; €43 million) in Straits Resources, a Perth-based mine developer and operator.

Standard Chartered Private Equity invests in mid- to late-stage companies in need of expansion capital or acquisition finance, and in management buyouts. Its focus is on investments in Greater China, India, Korea and Southeast Asia.

The firm did not respond to a request for comment by press time.