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TPG Newbridge to re-enter Japan

TPG Newbridge, the Asia-focused investment subsidiary of Texas Pacific Group, is to begin investing again in Japan after an absence of three years

Texas Pacific Group, a US private equity firm, is to make a return to investing in Japan after a break of three years, according to a report.

Bloomberg said that TPG Newbridge, the Asia-focused investment arm of Texas Pacific Group will hire up to five investment professionals to work in Japan, focusing on identifying and evaluating potential investments.

TPG Newbridge will spend up to $1 billion (€785 million) in Japan by the end of 2007, Texas Pacific partner Jun Tsusaka told Bloomberg: “Some Japanese companies have trouble cutting costs and dealing with competition. We can be a strategic partner by injecting risk capital and helping them acquire rivals.”

Tsusaka added that TPG Newbridge has 25 deals in the pipeline, of which four investments could total $850 million.

Ashikaga Bank is one possible target, according to Tsusaka, although the government-owned bank has also reportedly attracted the interest of General Electric, Lone Star and Nomura. Consumer finance is also a sector the firm will focus on.

TPG Newbridge last invested in Japan in 2003 when it was part of a consortium that acquired Japan Telecom for $2.4 billion.