The Carlyle Group and Yakjin Trading Corp Form Strategic Partnership

Investment supports the growth of the Korean garment OEM

Seoul, Korea – Global alternative asset manager The Carlyle Group (NASDAQ: CG) today announced that it has partnered with Mr. Yong-Ro Cho, CEO of Yakjin Trading Corp, to set up Yakjin Holdings Inc. and acquire a 100% stake in Yakjin Trading Corp, one of the major garment OEM companies in Korea. Carlyle holds a 70% stake and Mr. Yong-Ro Cho holds a 30% stake in Yakjin Holdings Inc. This transaction values Yakjin Trading Corp at approximately KRW 200 billion (US$188 million).

Following the formation of the partnership, Mr. Yong-Ro Cho will continue to serve as CEO of both Yakjin Trading Corp. and Yakjin Holdings Inc.

Established in 1978 by Mr. Young-Tae Cho, the Founder and Chairman of Yakjin Trading Corp, Yakjin is one of the major garment OEM companies in Korea, with manufacturing facilities in Vietnam, Indonesia and Cambodia. Yakjin has a strong customer base with large multi-national fashion retailers including GAP, Banana Republic, Old Navy, L Brands, American Eagle and Walmart. Yakjin is expanding its in-house fabric production capacity and strengthening its design team to offer increasingly differentiated value-add products and services to customers.

Sang Pil (Philip) Park, Head of Korea for Carlyle’s Asia Growth operation, said, “We are thrilled to partner with Yakjin, a company that is led by a talented CEO and with a strong reputation in the apparel manufactory industry. The partnership will see Mr. Yong-Ro Cho continue to maintain control of the Yakjin’s operation as in the past, while Carlyle will leverage its industry expertise and global network to support the company’s growth plan and enhance back-office operation.”

Mr. Yong-Ro Cho, CEO of Yakjin Trading Corp, said, “Carlyle, with strong expertise in the consumer and retailer sector, is the ideal investment partner. We look forward to working closely with Carlyle to grow our company. The partnership will enable us to execute our growth strategies, strengthen our operation and further enhance our product quality and customer services.”

Equity for the transaction comes from Carlyle Asia Growth Partners IV, a $1.04 billion Asia growth capital fund. This investment is the second transaction of Carlyle Asia Growth Partners in Korea this year, following the investment in Tapex Co., Ltd., an adhesive tape and plastic wrap manufacturer serving customers in the IT and consumer space, in July.

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About The Carlyle Group
The Carlyle Group (NASDAQ: CG) is a global alternative asset manager with $185 billion of assets under management across 122 funds and 81 fund of funds vehicles as of September 30, 2013. Carlyle's purpose is to invest wisely and create value on behalf of its investors, many of whom are public pensions. Carlyle invests across four segments – Corporate Private Equity, Real Assets, Global Market Strategies and Solutions – in Africa, Asia, Australia, Europe, the Middle East, North America and South America. Carlyle has expertise in various industries, including: aerospace, defense & government services, consumer & retail, energy, financial services, healthcare, industrial, technology & business services, telecommunications & media and transportation. The Carlyle Group employs more than 1,450 people in 34 offices across six continents.

Web: www.carlyle.com
Videos: www.youtube.com/onecarlyle
Tweets: www.twitter.com/onecarlyle
Podcasts: www.carlyle.com/about-carlyle/market-commentary

About Yakjin Trading Corp
Established in 1978 and headquartered in Seoul, Yakjin Trading Corp is one of the major garment OEM companies in Korea, with manufacturing facilities in Vietnam, Indonesia and Cambodia. Yakjin has a strong customer base with large multi-national fashion retailers including GAP, L Brands, American Eagle and Walmart.

Media contacts:

The Carlyle Group
Tammy Li                                                       Brian Zhou
Phone: +852 2878 5236                                Phone: +86 10 57067070
tammy.li@carlyle.com                                    brian.zhou@carlyle.com

Yakjin Trading Corp
Jong-Kwan Kim
Phone: +822 405 1314
jkwkim@yakjin.com

Ogilvy Public Relations, Korea
JH Yoo
Phone: +82 2 513 1552
jh.yoo@ogilvy.com

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