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This article appeared on the capital markets compass "Signal" at 18:43 on July 6, 2026.
Hillhouse Investment has halted talks with shareholders of IGIS Asset Management over acquiring a stake. Hillhouse had continued negotiations after losing its preferred bidder status, but with the acquisition ultimately called off, the seller is expected to seek a new buyer.
According to the investment banking (IB) industry on the 6th, Hillhouse informed the IGIS Asset Management shareholder group on the afternoon that it would withdraw its acquisition decision.
Hillhouse lost its preferred bidder status around March this year. It failed to sign a share purchase agreement (SPA) within the deadline but had continued to negotiate detailed terms. Until recently, it had pursued the deal, including requesting detailed materials from IGIS Asset Management for the acquisition, but it withdrew its intention to acquire as of the 6th.
The prevailing view is that Hillhouse's withdrawal resulted from a combination of factors. Beyond being caught in the framing of Hillhouse as Chinese-backed capital, financial authorities reportedly balked at the loan-centered acquisition structure. Concerns arose that if the deal became a "leveraged buyout (LBO)" structure repaying acquisition loans with IGIS's future dividends, it could lead to a vicious cycle of short-term profit-taking and resale rather than the company's qualitative growth.
Adding to this, the National Pension Service, the largest limited partner (LP), viewed the sale unfavorably, and Heungkuk Life Insurance—which bid 1.05 trillion won in the main round—filed a police complaint against the seller, both of which had a negative impact. The fact that the price surged to 1.1 trillion won during the bidding process was also seen as a burden.
Amid such risks, Hillhouse judged it would not be easy to clear the financial authorities' major shareholder eligibility review in a short period and did not pay the 100 billion won down payment. As a result, the seller is now looking for a new buyer. Heungkuk Life Insurance, which participated in the bid but narrowly lost, has effectively lost its appetite for the acquisition.
IGIS Asset Management said, "Hillhouse notified us on the 6th that it would not proceed with this transaction," adding, "IGIS Asset Management will focus for the time being on stabilizing the company and maximizing its core asset management performance."
