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Carlyle raises $1 billion for third Japanese buyout fund

The mid-cap fund raised ¥119.5 billion surpassing its ¥100 billion target.

The Carlyle Group has raised ¥119.5 billion ($988 million; €872 million) for its third dedicated Japanese buyout fund, Carlyle Japan Partners III (CJP III), surpassing its target of ¥100 billion.

CJP III will focus on mid-cap companies across a range of sectors and industries in Japan taking majority or significant minority stakes over a three to five year investment cycle, a spokesperson said.

The fund has already made four investments, including Oyatsu Company, Sunsho Pharmaceutical Company, ARUHI Corporation (previously known as SBI Mortgage Company) and Hitachi Metals Techno.

A spokesperson declined to comment on the deal pipeline or fund commitments.

Tamotsu Adachi, managing director and co-head of the Carlyle Japan advisory team, said in a statement that many of local opportunities are “driven by an increasing focus on management succession planning and corporates’ decision to focus on their core business”.

A team of 20 investment professionals based in Tokyo are advising the fund.

Since establishing its Tokyo office in 2000 and until 30 June 2015, Carlyle has invested $2.6 billion of equity in more than 40 transactions in Japan, the statement said.

In July, Permira appointed Ryotaro Fuji as its new head of Japan, joining from KKR. In the same month, KKR hired the former head of the Japan Exchange, Atsushi Saito, as non-executive chairman of KKR Japan. Those appointments followed CVC’s appointment in May of Atsushi Akaike as the firm’s head of Japan, as reported by Private Equity International.