Carlyle Group raised ¥430 billion ($2.8 billion) for its fifth Japanese buyout fund, adding to signs of investor interest in the country despite a bleak fundraising environment for private equity firms globally.
Carlyle believes it is the largest Japan-focused buyout fund ever raised and about 70% larger than the previous one that was merged in 2021, the firm said in a statement on Tuesday. Carlyle Japan plans to add nine investment professionals this year in anticipation of greater deal flow, and has filled about half of the positions, a spokesperson said.
The Washington DC-based alternative asset manager said it will continue to focus on private equity opportunities in the technology, consumer, healthcare and general industries sectors in Japan. It will focus on companies with succession issues, along with carve-outs and take-privates.
Although private equity firms have struggled to gain traction in Japan for years, the sector has had more success recently as publicly traded companies under pressure to improve shareholder value have become more open to selling non-capital assets. core interests. More and more companies are also moving to the private sector, with the value of management buyouts in the country reaching a record last year.
Carlyle, which has been active in Japan since 2000, has made more than 40 private equity investments locally. The company announced this week that it will try to take KFC Holdings Japan, operator of the fried chicken chain, private with a ¥95 billion offer.
