Core Insights - In the summer of 2025, TPG sold Samhwa to KKR for 800 billion KRW (approximately 4.136 billion RMB), achieving nearly three times the investment return in less than two years, netting over 3 billion RMB [2][8] - Samhwa, established in 1977, evolved from a small workshop to a leading manufacturer in the Korean beauty packaging industry, known for its precision pump technology [4][6] - TPG's investment strategy involved identifying undervalued assets, implementing operational improvements, and optimizing business focus, which significantly enhanced Samhwa's value before the sale [8][7] Company Overview - Samhwa is recognized as one of the top three manufacturers of cosmetic containers and pumps in South Korea, with major clients including Estée Lauder, LVMH, L'Oréal, and Shiseido, contributing 58% of its sales [4][6] - The company gained the title of "Pump King" after securing a ten-year exclusive supply contract with Estée Lauder [4] Investment Strategy - TPG acquired 100% of Samhwa for 300 billion KRW (approximately 1.551 billion RMB) from the founding family and a private equity fund in November 2023 [4] - TPG's successful investment history includes notable cases such as the turnaround of Continental Airlines and Burger King, showcasing its ability to enhance operational efficiency and profitability [5][6] Operational Improvements - TPG implemented several operational changes at Samhwa, including reducing the number of low-margin SKUs from 1,200 to 400, optimizing global production capacity, and launching a digital customization platform called "PumpLab" [7][8] - The introduction of a new management team aimed to professionalize operations and decision-making processes, moving away from a family-run model [7] Financial Performance - Upon selling Samhwa, TPG not only received 800 billion KRW from the equity sale but also an additional 100 billion KRW in special dividends, resulting in a net gain of 600 billion KRW (approximately 3.1 billion RMB) [8] - The internal rate of return (IRR) for TPG's investment in Samhwa was approximately 75%, with a cash-on-cash return multiple (MOIC) of 3 times [8]