【Bain Capital cashed out $16.7 billion in exit, with SK hynix becoming the second-largest shareholder of Kioxia】

US investment fund Bain Capital offloaded most of its shares in Kioxia, cashing out about $16.7B, setting a highest-ever return record in Japan’s PE history.
In 2018, Bain Capital teamed up with Apple, Dell, and SK hynix to acquire Toshiba Memory (now Kioxia) from Toshiba through four special purpose entities (SPCs). The four SPCs together held 55% of the shares, Toshiba about 40%, and Japan’s Hoya about 3%.
Kioxia completed its IPO in December 2024.
Latest ownership structure
Toshiba: 15% (largest shareholder)
SPC entity (actual owner SK hynix): 14% (second-largest shareholder)
Key uncertainties:
That year, SK hynix invested about $260 million into the SPC in the form of convertible bonds. The bonds have not yet been converted, so there is no voting right. Conversion requires going through antitrust reviews in each country.
The issue is that SK hynix’s global NAND market share is about 20%, directly competing with Kioxia. If SK hynix exercises its voting rights, interests could conflict with those of other shareholders.
SK hynix has pledged that its holdings will not exceed 15% of total voting rights before 2028. The Japanese government is unlikely to loosen its stance on voting rights flowing to overseas owners for core semiconductor companies. SK Group also has concerns about the approval process internally.
Choi Tae-won’s latest comments: No decision has been made yet; it will consider its next step once the situation stabilizes.
This equity drama isn’t at the endgame yet.