A Chinese financial firm said Tuesday that it has signed an agreement to buy about a third of a South Korean private equity firm, in a move to make an entry into South Korea's private equity sector.

Reorient Group, an affiliate of conglomerate China Chengtong Development Group Ltd., will acquire a 33.3 percent stake in Seoul-based EQ Partners, it said in a statement.

The deal will be worth 4.5 billion won (US$4.2 million).

Under the agreement, James Kim, the head of EQ Partners, will remain with the firm.

EQ Partners, which spun out of financial group Korea Investment Holdings in 2010, has $800 million in assets under management. It specializes in the infrastructure and utility sectors, and growth equity investments in South Korea and other countries.

The South Korean company recorded an after-tax net loss of 365 million won last year.

Industry watchers said the deal marked the first sizable acquisition by a Chinese entity of a stake in a South Korean private equity fund.

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Source: Yonhap News (Feb. 19, 2013)