Asia-focused private equity firm Affinity Equity Partners has agreed to sell its 61.4 percent stake in South Korea-listed digital music company Loen Entertainment to South Korea-listed media company Kakao, as part of Kakao’s acquisition of a 76.4 percent stake in the company for US$1.6 billion. As part of the deal, Affinity will reportedly receive US$748 million in cash as well as approximately US$503 million in Kakao shares, providing Affinity with an estimated unrealized 4.6x gross multiple and IRR of 86.5 percent in dollar terms on its investment.