Tokio Marine closes fifth Japan fund on $466m

The firm is targeting corporate divestitures and companies experiencing succession issues in the Japanese middle-market.

Japanese private equity firm Tokio Marine Capital has closed its fifth buyout fund on ¥51.7 billion ($466 million; €440 million), according to a statement.

The mid-market asset manager’s TMCAP2016 exceeded its initial target of ¥50 billion. The firm will invest the capital in middle market companies in Japan undergoing corporate divestitures and business succession.

TMCAP2016 was launched in October 2016 with initial commitments of ¥29.1 billion and held a second close on ¥41.7 billion in January this year. The fund is more than double the size of its predecessor, TMCAP2011, which collected ¥23.3 billion in 2013.

Tokio Marine’s latest fund has a re-up rate of 85 percent and got a “good response from limited partners because of the buoyant fundraising market in Japan”, a source with knowledge of the matter told Private Equity International. Limited partners in the fund institutional investors including Japanese pension funds and regional banks.

The firm has made its first investment from TMCAP2016 in December last year with the acquisition of Aichi-headquartered chilled desserts company ROPIA for an undisclosed sum.

Tokio Marine Capital is the private equity arm of Tokio Marine & Nichido Fire Insurance group and manages assets of over ¥70 billion.