Private equity firm Bain Capital has taken control of Inspire Entertainment Resort on Yeongjong Island, the largest integrated resort in South Korea. This follows financial difficulties faced by Mohegan Gaming & Entertainment (MGE), whose South Korean subsidiary defaulted on a substantial loan.

Bain Capital confirmed on Monday for The Korean Economic Daily that it had obtained a controlling interest in MGE Korea, the South Korean branch of U.S.-based Mohegan Gaming & Entertainment. MGE Korea previously held full ownership of the luxury resort, but after defaulting on a $275 million loan from multiple lenders in November 2021, it lost management control.

The resort, situated near Incheon International Airport, spans 461,661 square meters—comparable to 64 soccer fields. It features three five-star hotels with a combined total of 1,275 rooms, a 15,000-seat performance arena, an indoor water park under a glass dome, and a large-scale convention center capable of hosting up to 4,000 guests. Additionally, Inspire is the country’s largest foreigner-exclusive casino.

Financial Struggles and Bain Capital’s Intervention

Despite an investment of $1.6 billion, MGE Korea has struggled financially since the resort’s grand opening in January last year. By September, Inspire had recorded revenue of KRW 219 billion ($152 million) but suffered a net loss of KRW 265.4 billion ($152 million). In its most recent fiscal year (October 2023–September 2024), the resort posted an operating loss of KRW 156.4 billion ($108 million).

Bain Capital exercised its rights to take control of MGE Korea after the parent company was unable to meet its loan obligations. Consequently, the resort’s official name has been changed from Mohegan Inspire Entertainment Resort to Inspire Entertainment Resort.

During Mohegan’s fourth-quarter 2024 earnings call, the company’s COO, Ari Glazer, acknowledged the transition, stating, “Following the earnings release this morning and just a few hours ago, we received notice from the agent for the lenders to MFGE Korea Ltd, the parent company of INSPIRE, that they have accelerated the HoldCo debt. Further, the agent and Bain Capital, the principal lender, have purported to take certain remedies including appropriation of the shares of MGE Korea. We are evaluating the propriety of these actions and considering the appropriate responses.”

No Immediate Changes to Operations or Management

Despite the ownership shift, daily operations at the resort will continue without interruption. An official from Mohegan Inspire confirmed, “Although the management rights have been transferred to Bain Capital, there will be no immediate changes in the executive team.” Bain Capital echoed this sentiment, stating that Inspire’s employees, guests, and overall business functions will remain unaffected.

Bain Capital emphasized its commitment to Inspire’s long-term growth, with plans to reinforce the resort’s market position. The firm stated, “With Bain Capital’s deep industry expertise, extensive experience, and strong teamwork with our management, we are confident that this move will enhance operational stability and drive long-term growth.”

Bain Capital has an extensive history in the South Korean market, having previously invested in and expanded companies such as Carver Korea, Hugel, Schwan’s, and Hanwha Advanced Materials. Now, with control over Inspire, the firm intends to improve financial performance and elevate the resort’s status as a premier entertainment destination in Asia.