The Carlyle Group Establishes Growth Capital Investment Team in Japan

Tokyo, Japan - Global private equity firm The Carlyle Group today launched a new growth capital investment effort in Japan that will make significant minority investments in and buyouts of companies in expansion to pre-IPO stages with significant growth potential. This new initiative will become an integral part of Carlyle’s overall Asia grow capital platform, the Carlyle Asia Venture Group headed by Wayne Tsou. Haruyasu Asakura, currently a Managing Director on the Carlyle Japan buyout team, will join the Carlyle Asia Venture Group to lead the Japan Growth Capital team. He will assemble a team of several new investment professionals in early 2005.

Asakura-san said, “We have studied the Japanese market closely for years and believe this new and unique investment approach is both necessary and has great potential. By targeting ¥500 million to ¥3 billion of equity per investment in key industries that fall within Carlyle’s core area of expertise, this effort will tap into a reservoir of need that other investment firms are not meeting.”

“This new initiative brings together Carlyle’s many global resources, including deep industry expertise, access to capital, buyout and venture knowledge, management-friendly approach and the hands-on support of talented local professionals. Further, given the increasing integration of the major Asian economies of Japan, China, Korea and India, there are tremendous synergies to be derived from a seamless regional operation. The addition of the Japan Growth Capital team further strengthens the Carlyle Asia Venture Group as the premier growth capital investment vehicle for the most exciting region of the world today. We are very please that Asakura-san will lead this important effort,” added Wayne Tsou, Managing Director and Head of the Carlyle Asia Venture Group.

The Carlyle Growth Capital team will pursue investments in business services, information technology, communication, semiconductors, media & content and other high-growth sectors in Japan. By leveraging Carlyle’s local presence in Japan, the Growth Capital team will seek co-investments with corporations as well as other investment firms. The team expects to close two to three investments next year.

At Carlyle, Asakura-san has led both growth capital investments, such as the highly successful investment in eAccess, and buyout investments in the technology space, including DDI Pocket, in Japan. He also has significant investment experience in technology companies prior to Carlyle. To lead this new initiative, Asakura-san will leave the Japan buyout team but continue to work closely with the team and serve as a board member of DDI Pocket.

Mr. Tsou has considerable investment experience in Asia and Japan, both at Carlyle and at Warburg Pincus, where he was head of technology investments for Asia and Japan.

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