Advent closes ¥60bn Japan fund

The global buyout group is having a week of firsts, having closed what it says is the first industrially-focused, mid-market Japanese private equity fund raised by an international firm just a day after making its maiden investment in the Dominican Republic.

Advent International, the Boston-based mid-market buyout group, has closed its Japan Private Equity Fund on ¥60 billion (€395 million; $560 million) after marketing the fund since July 2007.

The fund, which Advent says is the first fund raised by an international private equity firm to focus on the Japanese mid-market, will look to build a portfolio of between seven and 15 investments in Advent’s favoured sectors of healthcare and life sciences; industrial; retail and consumer; and support services.

Japan: embracing
private equity

The fund will typically invest in companies with enterprise values ranging from ¥5 billion to ¥50 billion, but has the option of investing in larger businesses via co-investment with other Advent funds.

The institutional investor base for the Japan fund is 23 percent Japanese, 31 percent from the rest of Asia and 46 percent North American and European.

Advent first opened its Japanese office in 2001 to service the needs of Japanese institutional investors.

“Not only has the private equity industry in Japan shifted from its initial focus on distressed situations and balance sheet restructuring to real, operationally-led value creation, but Japanese businesses have fundamentally embraced the need for enhanced global competitiveness in order to achieve long-term profit growth,” said Advent managing partner, John Singer, in a statement.

Yesterday, Advent disclosed a duo of Latin American deals, including the acquisition of Caribbean airport operator Aeropuertos Dominicanos Siglo XXI from a consortium including the Hazoury Group and Vancouver Airport Services.

While the value of the transaction, Advent’s first in the Dominican Republic, was not officially disclosed, it has been reported at $350 million. The firm also purchased Brazil home improvement retailer Quero-Quero.

Advent was founded in 1984 and has since raised funds totalling $24 billion. It closed its most recent global private equity fund on  €6.6 billion in April.