Carlyle Group raised ¥430 billion ($2.8 billion) for its fifth Japan buyout fund, adding to signs of investor interest in the country despite a gloomy fundraising climate for private equity firms globally.
It’s the largest Japan-focused buyout fund ever raised, according to Carlyle, and about 70% bigger than the previous one it pulled together in 2021, the company said in a statement on Tuesday. Carlyle Japan is seeking to add nine investment professionals this year in anticipation of increased deal flow, and has filled about half the positions, a spokesman said.
The Washingtonn D.C.-based alternate asset manager said it will continue to target private equity opportunities in the technology, consumer, health care and general industries sectors in Japan. It will focus on businesses with succession issues, along with corporate carve-outs and take-privates.
Although private equity firms struggled for years to make inroads in Japan, the industry has had more success recently as public companies facing pressure to improve shareholder value become more open to selling off noncore holdings. More companies are also going private, with the value of management buyouts in the country hitting a record last year.
Carlyle, which has been operating in Japan since 2000, has made more than 40 private equity investments locally. The firm announced this week that it will seek to take fried chicken chain operator KFC Holdings Japan private with a ¥95 billion tender offer.
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