J-STAR strikes second deal from latest buyout fund

The Tokyo-based firm invested in Sapporo-based private tutoring company Alpha Corporation.

Japanese mid-market firm J-STAR has acquired Sapporo-based tutoring business Alpha Corporation through its third buyout fund, J-STAR No.3, according to a statement.

Financial terms of the transaction were not disclosed, but the firm typically invests between ¥1 billion to ¥3 billion per deal.

This is the firm’s second deal from J-STAR No. 3 Investment Limited Partnership, which held a final close on over ¥33.25 billion ($298 million; €272 million), against a ¥30 billion target last month. In early April, the firm acquired veterinary clinic Fuji Field, the first transaction from the fund.

Alpha, founded in 2005, operates 16 private tutoring schools in Sapporo along with a nationwide home tutoring service.

It is expected that J-STAR will employ a buy-and-build strategy for Alpha, an approach it has used in insurance company Nihon Hoken Service, adding Yokohama-based insurance agency Sokisha Corporation and Hunel FEA as bolt-on acquisitions.

J-STAR has over $300 million in assets under management and specialises in deals in Japan’s lower mid-market.