Global alternative asset manager The Carlyle Group announced that it has raised ¥119.5 billion (approximately US$1.0 billion) for its third Japanese buyout fund, Carlyle Japan Partners III (CJP III), exceeding its target of ¥100 billion. The fund, advised by a team of 20 investment professionals based in Tokyo, focuses on mid-cap companies across a range of sectors and industries in Japan.
Carlyle is the only global alternative asset manager to establish a dedicated Japan buyout fund denominated in yen. Carlyle’s Japan buyout funds, which have made 20 investments in Japan, have a track record of supporting Japanese mid-cap companies’ overseas business expansion, enhancing their operational efficiency and strengthening their management infrastructure.
Tamotsu Adachi, managing director and co-head of the Carlyle Japan advisory team, said, “We are delighted to close our third Japan buyout fund, and are grateful to our existing and new investors for their support and confidence in our team, our investment strategy and the Japan market. We have seen growing investor appetite for investing in Japan and continue to identify compelling opportunities driven by an increasing focus on management succession planning and corporates’ decision to focus on their core business.”
Kazuhiro Yamada, managing director and co-head of the Carlyle Japan advisory team, said, “Our strong understanding of the local business, deep industry expertise and global network have enabled us to create significant value for our investors and companies over the last 15 years. There are many Japanese companies with good products and technologies that have strong potential for global business expansion. We will build upon our track record of value creation to help Japanese companies grow and expand their businesses, both domestically and globally.”
David Rubenstein, co-founder and co-CEO of The Carlyle Group, said, “Carlyle was one of the first global private equity firms to invest in Japan. We have gone through different economic cycles and have remained strongly committed to the Japanese market. We are pleased to have contributed to the development of the private equity industry in Japan, and are excited about the great opportunities offered by this attractive market.”
CJP III has already made four investments, including Oyatsu Company Limited, Sunsho Pharmaceutical Co., Ltd., ARUHI Corporation (previously known as SBI Mortgage Co., Ltd.) and Hitachi Metals Techno, Ltd. Having first established its Tokyo office in 2000, Carlyle has invested $2.6 billion of equity in more than 40 transactions in Japan across all Carlyle funds as of June 30, 2015.
