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This week, Private Equity International reported on CLSA Capital Partners’ first investment in Japan’s education sector, where it sees tutoring businesses thriving. The investment was made from the firm’s $210 million buyout vehicle, Sunrise Capital II, which is targeting Japanese mid-cap companies with strong growth potential.
PEI’s Research & Analytics team have taken a look at managers raising closed-ended private equity vehicles focused exclusively on Japan, to discover who the biggest players are and how much they have gathered to invest into the country.
The Development Bank of Japan (DBJ) heads fundraising with $1.5 billion collected since 2010 – the result of the close of just one vehicle in 2013, the Competitive Enhancement Fund, which aimed to enhance corporate value by making mezzanine loans to Japanese companies.
Both The Carlyle Group and Japan Industrial Solutions have also raised more than $1 billion to invest into the country since 2010, garnering $1.07 billion and $1.02 billion respectively. Carlyle Japan Partners III, CJP Co-investment II B and Japan Industrial Solutions Fund I all closed in 2013.
Domestic fund managers, such as CLSA, dominate the top ten, reflecting how active they have been in targeting Japan’s mid-market where almost four million small to medium-sized enterprises provide investment opportunities in abundance.