Japan’s Integral Group closes third fund on $670m hard-cap

The firm received commitments from new LPs including domestic pension funds, endowments, insurance companies and funds of funds.

Tokyo-based private equity firm Integral Group has closed its third Japan mid-market buyout fund on its ¥73 billion ($670 million; €626 million) hard-cap, the firm said in a statement on Thursday.

The fundraise was oversubscribed and received substantial commitments from existing and new investors including domestic and international pension funds, endowments, foundations, insurance companies, financial institutions and funds of funds, according to the official announcement. 

About 75 percent of the capital raised came from domestic investors, while the rest came from international LPs from North America, Singapore and Hong Kong, Integral director Tsuyoshi Yamazaki told Private Equity International.

Capital from the fund will be invested in about 12 buyout opportunities in Japan’s mid-market segment, focusing on business succession, restructuring, corporate spin-offs and management buyouts. The firm may also invest in large-cap companies alongside its international LPs, Yamazaki added.

Integral Fund III, launched in July last year with a target of ¥60 billion, is almost double the size of its predecessor, Integral Fund II, which raised ¥44.2 billion in November 2014. Meanwhile, Fund I closed on ¥11.2 billion in April 2010.

A spokesperson for the firm declined to provide details on fund performance but said Fund I is fully invested, while Fund II is nearly fully deployed.

Along with the fund close, Integral has also appointed Tsuneo Okubo, the former president of food service company Seven & i Food Systems, supermarket chain SEIJO ISHI and Japanese drugstore Drug Eleven, as a senior advisor.

Integral, with about $1 billion in assets under management, has made investments in apparel company Itokin, hair products company Aderans, manufacturing company Ohizumi, and seafood company J-Trading from Fund II.