CITIC targets ¥30 billion for Japan fund

The alternative investment firm is targeting almost twice the amount it raised for its first Japan-based fund.

Hong Kong-based CITIC Capital Partners is targeting commitments of ¥30 billion (€272 million; $340 million) for its second Japan-focused private equity fund, a firm spokeswoman confirmed.
Hironobu Nakano, the head CITIC Capital’s Japan unit, told the Reuters Japan Investment Summit the firm has already raised ¥18 billion thus far and is aiming for a final close in January 2011.
The firm declined to provider further details pertaining to fundraising.
The fund is a successor to CITIC Japan Partners, a Japan-focused fund established in 2004. The fund has total commitments of ¥16.9 billion with approximately 90 percent of capital coming from blue-chip Japanese investors.
CITIC Capital’s second Japan fund will succeed CITIC Japan Partners, a ¥16.9 billion private equity fund established in 2004 to invest in Japanese companies seeking to expand operations into China.
The firm’s most recent Japanese investment came in the form of a ¥1.3 billion investment in plastics company Higashiyama Films in May. A few of its other portfolio companies include Narumi China, a maker of China tableware and beverage company Pokka, which Nakano said could be headed for an initial public offering as early as this fiscal year.
CITIC Capital is a part of CITIC Group, one of China’s largest financial conglomerates. It is owned by Chinese sovereign wealth fund China Investment Corporation as well as CITIC Group subsidiaries CITIC International Financial Holdings and CITIC Pacific. The firm also manages funds focused on Chinese private equity, Chinese real estate and US private equity. In all, it manages more than $3 billion in capital.