Japan’s PE firm Advantage Partners closes Asia fund at $380m

Photo by Wai Austin on Unsplash

Japanese mid-market private equity firm Advantage Partners has announced the final close of its inaugural Asia Fund with total commitments of $380 million.

In a statement, the firm said the fund represents the continuation of its strategy to pursue small to mid-cap investments in companies outside of Japan that have an opportunity for Japan-linked value creation.

The fund has already invested in four companies, namely Zheng Yi Wei, a Beijing-based operator of Korean restaurants; Plastic Centre Group, a Malaysia-based consumer packaging manufacturer; a Taiwan-based manufacturer of eggs and egg-related products; and a Shanghai-based provider of education services.

Advantage claims the fund had attracted a diverse set of existing and new investors, including leading Japanese corporations, banks, family offices, global funds of funds and pension funds.

The raising of the Asia fund was done simultaneously with that of its fifth flagship buyout fund which hit its final close last year, at its hard cap of $532 million. The fund, named Advantage Partners V, reached its first close back in December 2015, reportedly raising half of the amount it had set out to raise.

Founded in 1997, the funds served by Advantage Partners have invested in more than 50 businesses totalling over ¥300 billion, the company states on its website. It also says that its funds have the ability to syndicate investments and loans to other global institutional investors and banks.

Advantage Partners is the latest PE firm to have announced the close of its Asia-focused fund this year. In early May, Dymon Asia Private Equity (DAPE), the PE arm of Dymon Asia Capital, announced the final close of its second Southeast Asia fund at $450 million. This was followed by the final close announcement by Swedish PE firm EQT Partners, who raised $800 million for its latest Asian mid-market fund.

Bain Capital LLC is reported to be targeting up to $4 billion for its new Asia fund, while Hong Kong-based PAG is said to be looking to raise $6 billion for its regional fund.

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