Private Equity News & Analysis

Mizuho Capital in $90m exit

The Tokyo-based firm has sold its last remaining shares in Japan Pure Chemical, its first-ever portfolio company acquired in 1999, as it raises its third buyout fund.

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Mizuho Capital Partners, an affiliate of Japanese financial conglomerate Mizuho Financial Group, has exited Japan Pure Chemical, the maiden investment from its debut buyout fund. 

The firm has been gradually selling down its stake over the years, and in total has earned ¥8 billion ($90 million; €61 million) from the sale of its shares in Japan Pure Chemical, Tadashi Miyazaki, a managing director at Mizuho Capital Partners, said in an interview.

In August 1999, Mizuho Capital Partners invested ¥1.4 billion for a stake of 90 percent in the company. At the time of Japan Pure Chemical’s initial public offering on the JASDAQ in December 2002, the firm sold a 40 percent stake. Its remaining 50 percent stake was sold in a series of transactions from the time of the company’s listing until last month.

Founded in 1971, Japan Pure Chemical develops, manufactures and sells plating solutions for various metals with a focus on the electronics industry. For the first quarter of 2009, the Tokyo-based company booked a gross profit of about ¥572 million ($6 million; €4 million).

The investment was made out of FBF2000, which closed on ¥15 billion in 1999. The fund’s successor, MH Capital Partners II, closed on ¥35 billion in 2003. Both funds are fully invested, Miyazaki noted.

Presently, Mizuho Capital Partners is in the market to raise ¥60 billion for its third buyout fund, which has garnered ¥44 million in commitments thus far. The firm is currently targeting foreign investors, having already raised capital from Japanese investors, according to Miyazaki.

Mizuho Capital Partners has made two investments out of this fund: Japan View Hotel in December 2007 and apparel manufacturer Waverock Holdings in March 2009.