1/6/2026
Stick Investment Chairman Donghwan Do to Retire Before Shareholders' Meeting
Asia Business Daily (01/06/26) Minwoo, Lee
Donghwan Do, who led the major domestic private equity fund (PEF) management firm Stick Investment (026890), has effectively made his retirement official. He is expected to step down after the first regular shareholders' meeting of the year and to dispose of his shares as well. According to the investment banking (IB) industry on January 6, Chairman Do recently informed key members of his plan to retire. Having already expressed his intention to step back from the front lines at various events and internal meetings last year, he has now formalized a more specific timeline. Born in 1957, Chairman Do has reportedly mentioned on several occasions that he intended to retire at the age of 70. Since founding the independent investment firm Stick in 1996, Chairman Do has expanded its reach to include venture capital investment, growing it into the major domestic PEF management company Stick Investment as it is today. The firm has established itself as a manager of funds entrusted by major domestic institutional investors (LPs) such as the National Pension Service, the Teachers’ Pension, and the Private School Teachers’ Pension. Its cumulative assets under management exceed 9 trillion won, and it has invested in more than 110 companies. However, there are views that this retirement is not entirely voluntary. Since last year, the company has faced engagement from investors such as Align Partners, making it difficult for Chairman Do to maintain control. As of the end of last year, investors held a combined stake of approximately 26.20%, including Align Partners (7.63%), U.S.-based Millie Capital (13.48%), and Korea’s Petra Asset Management (5.09%). This surpasses the combined stake of Chairman Do (13.46%) and other key executives and related parties, which totals 19.07%. Given that investors have publicly demanded the cancellation of treasury shares and a generational shift, it will be difficult for Chairman Do to be reappointed as a director at the shareholders' meeting scheduled for March. Previously, Chairman Do attempted to resolve the situation by selling about 13% of treasury shares to bring in a white knight, but this plan fell through. As a result, it is seen that he had no other choice but to step down voluntarily. It is reported that not only is Chairman Do retiring, but he is also pursuing the sale of his stake. Some domestic companies and foreign asset management firms are said to have shown interest. An IB industry source said, "Chairman Do has mentioned changes in the governance structure not only to external parties such as LPs but also to key internal members, emphasizing the need to prepare future strategies," adding, "It seems that Stick Investment, a leading domestic PEF, is facing significant changes." Once Chairman Do steps down, Stick Investment is expected to be led for the time being by Vice Chairman Donggeol Kwak, who has been with Chairman Do since the company's early days, aiming for a smooth transition in governance. Vice Chairman Kwak’s term as an inside director runs until March 2027. The recent organizational restructuring is also interpreted as being in line with this transition. On January 2, Stick Investment elevated its growth capital and credit business units from divisions to departments, bringing them on par with private equity as key pillars of its business. This move is seen as an effort to decentralize power from Chairman Do and to balance the portfolio.
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