Carlyle Raises JPY50 Billion Japanese Buyout Fund

Tokyo, Japan - Global private equity firm The Carlyle Group today announced that it has raised a JPY50 billion fund, Carlyle Japan Partners, LP, to conduct buyout investments in Japan. Nearly sixty percent (JPY28 billion) of the commitments to the fund are from Japanese institutional investors.

Tamotsu Adachi, Carlyle Managing Director and head of the Japan team, said, “We are pleased to have attained this important milestone. Reaching this level, coupled with the three buyout transactions we have conducted, demonstrates that the Japanese business community understands the positive and important role that private equity can play. With a JPY50 billion fund, Carlyle Japan Partners is properly positioned to conduct pro-management buyouts of companies requiring equity commitments of JPY3-10 billion.”

David Rubenstein, Carlyle co-founder and Managing Director, said, “Japan has vast potential in terms of private equity investing. We have a superb team of Japanese investment professionals working to deploy this capital. Their knowledge of the Japanese market and ability to add value to the management of our portfolio companies adds significantly to Carlyle’s effectiveness on a global basis.”

A significant corporate restructuring effort is now under way in Japan. The Japanese government is pressuring banks to resolve non-performing loan issues and has established the Industrial Rehabilitation Corporation (IRC) to facilitate corporate revitalization. Corporations are also dramatically changing their attitudes, concentrating more on profitability and efficiency. Many companies are focusing on their main businesses and divesting non-core subsidiaries, which opens the door to private equity investments.

Carlyle established a Tokyo office in 2000 and has 15 investment professionals. Industries of expertise include: manufacturing (e.g. auto-parts), consumer goods, corporate outsourcing services, telecom/IT services, and healthcare. To date, Carlyle Japan has executed three buyout transactions: Asahi Security Co. Ltd., a cash management outsourcing services and electronic security services provider; Kito Corp., a hoist and crane manufacturer; and Colin Corp., a medical device manufacturer. Carlyle has also made several venture investments, including eAccess, one of the leading broadband access providers in Japan, which recently went public on the Tokyo Stock Exchange.

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