AI Capital raises Asian secondaries fund

The Japanese fund of funds manager is in the market for a third Asian vehicle targeting secondaries opportunities in the region. It has a target commitment of up to $200m.

Japan’s fund of funds manager Alternative Investment Capital (AI Capital) is in the market for a fund of funds with a target of up to $200 million.

According to a statement, Development Bank of Japan has made a “significant” commitment to the AIC Asia Opportunity Fund as its largest investor. Other LPs include Mitsubishi Corporation and Sumitomo Mitsui Banking Corporation.

An industry source told Private Equity International the fund has thus far garnered about half of its target commitment. However, it is unclear when the vehicle expects a final close.

In terms of investment strategy, the fund will focus on opportunities in Asia, including China, India, Southeast Asia and Australia.

In addition, the fund is to deal in secondaries as financial institutions are expected to sell their holdings in private equity funds given tighter capital adequacy regulations, the statement noted.

The source added that more than 50 percent of the fund would be invested in secondaries.

Founded in 2002, AI Capital raised ¥12.1 billion and ¥18.8 billion for its first two Japan-focused vehicles in 2002 and 2006 respectively. In 2004, the firm launched Global Private Equity Fund I to invest in funds in the US and Europe. The fund and its successor both raised $152 million.

Last year, the firm lost former president and chief executive officer Kazushige Kobayashi to Capital Dynamics. Tappei Shimizu, who previously served as executive vice president at AI, succeeded the position.