CITIC Capital exceeds target for Japan-focused fund

The Hong Kong-headquartered firm has closed its third Japan buyout fund on $266m, beating its target of $250m.

CITIC Capital Partners has held a final close on its third Japan-focused fund on its hard-cap of ¥30 billion ($266 million; €246 million), exceeding the original ¥25 billion target fund size.

CITIC Capital Japan Partners III (CCJP III), launched in the third quarter of 2015, received significant demand from new and existing investors, attracting both Japanese and non-Japanese institutional investors, including sovereign wealth funds, financial institutions, pension funds and funds of funds, the firm said in a statement. 

The firm’s third fund has a similar focus as its predecessor funds and will be invested in Japanese consumer, healthcare, and industrials companies seeking to expand in China. The capital has already been deployed in three investments so far and the firm is targeting to make about 10 investments in total via the vehicle. 

Among its investments are apparel company Mark Styler, footwear retailer Akakura and an unnamed diagnostic drug company.

Commenting on the fundraise, Yichen Zhang, chairman and chief executive officer of CITIC Capital, said: “We are delighted by the strong support we received from both existing and new investors. Their support is a recognition of our success in establishing a strong franchise in the Japan PE market, and a validation of the tremendous investment opportunity presented by Japanese companies requiring backing in their international expansion, and our deep network of China relationships. We look forward to expanding our Japan franchise through CCJP III.”

CCJP III’s predecessor funds – the 2008-vintage ¥16.9 billion CITIC Japan Growth Partners and 2010-vintage ¥18.2 billion CITIC Capital Japan Partners II – have both been fully invested, PEI data indicated. 

Investors in CITIC Capital’s previous funds, which also feature China-focused private equity and venture capital vehicles, include the Canada Pension Plan Investment Board, National Council for Social Security Fund, Sumitomo Mitsui Trust Bank, and Temasek Holdings, according to PEI data.

CITIC Capital Partners, the private equity arm of CITIC Capital Holdings, manages $4.5 billion of committed capital on behalf of over 60 international investors.