Carlyle raises $2.3b for its biggest Japanese buyout fund to date

FILE PHOTO: The logo of the Carlyle Group is displayed at the company's office in Tokyo, Japan October 17, 2018. REUTERS/Issei Kato

Carlyle Group said it has raised 258 billion yen ($2.3 billion) for its biggest Japan fund to date, aiming to pick up businesses shed by conglomerates as well as companies where elderly owners have no obvious successors.

It is the U.S. buyout firm’s fourth Japan fund and is more than twice the size of the third, which raised 120 billion yen.

“More conglomerates are expected to become serious about selling their non-core businesses over the next several years and that will be our opportunity, which is why we doubled the size,” Kazuhiro Yamada, a representative for Carlyle Japan, said in an interview.

The new fund, which matures in 2026, will likely split its money equally between deals resulting from corporate asset sales and succession deals, he said.

Corporate asset acquisitions will likely be range between 20 billion yen and 40 billion yen, he said, adding that for larger deals, Carlyle will also use money from other funds in Asia, Europe and the United States.

Encouraged by a Japanese government drive to improve corporate governance, activist investors are pressuring more companies such as brewer Kirin Holdings Co Ltd to shed non-core businesses. Conglomerates with many subsidiaries are also under pressure to slim down and improve returns for shareholders.

Carlyle is keen to find companies that weather economic downturns well as the economy is bound to deteriorate due to the coronavirus pandemic, Yamada said.

Other big funds are also targeting Japan. These include Apollo Global Management which opened up offices in Tokyo last year and Blackstone Group which established a buyout team in Japan in 2018.

Reuters

Singapore Reporter/s

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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.