Tokio Marine raises $363m for Japan buyout fund

The Japanese mid-market private equity firm has held a second close for its latest Japan-focused buyout fund, which has a target of $500m.

Tokio Marine Capital has held a ¥41.7 billion ($363 million; €339 million) second close on its latest Japan buyout fund, according to a statement.

TMCAP2016, which is seeking ¥50 billion, was launched in October 2016 with initial commitments of ¥29.1 billion. A third and final close is targeted around early April this year.

The fund, backed by various Japanese institutional investors and pension funds, has a 85 percent re-up rate, a source with knowledge of the fundraising told Private Equity International.

The firm made its first investment from TMCAP2016 in December with its acquisition of an Aichi-headquartered chilled desserts company ROPIA.

Tokyo Marine’s predecessor fund, the 2011-vintage TMCAP2011 raised ¥23 billion and has so far made investments in the manufacturing company KEC Corporation, electrical wiring manufacturer Izumi Products and wholesale food distribution business SHOKUKAI.

The Bank of Tokyo-Mitsubishi UFJ is an investor in the firm's previous fund, 2000-vintage ¥5.3 billion IT2000, PEI data indicated.

Founded in 1991, Tokio Marine Capital is the private equity arm of Tokio Marine & Nichido Fire Insurance group. The firm manages around ¥50 billion of assets and targets control positions in mid-cap private companies in Japan.