CITIC Capital Partners Limited (CCP), the private equity arm of CITIC Capital Holdings Limited (CITIC Capital), has made the final close of its third Japan buyout fund, CITIC Capital Japan Partners III, L.P. (CCJP III) at a hard cap of JPY30 billion ($268.34 million).
The amount raised is higher than the initial target of JPY25 billion ($223.6 million) as the fund was oversubscribed riding on demand from existing and new investors.
The vehicle attracted both Japanese and non-Japanese institutional investors, including sovereign wealth fund, financial institutions, pension fund and fund–of-funds, it said.
Yichen Zhang, Chairman & chief executive of CITIC Capital, stated: “Their support is a recognition of our success in establishing a strong franchise in the Japan PE market.”
CCP launched its first Japan buyout fund in 2004 and since then has been an active player in the country’s PE market sponsoring the growth of mid-sized portfolio companies with its unique China angle and resources.
Through the last two funds, the maiden fund of JPY 16.9 billion (launched in 2004) and its successor fund of JPY 18.2 billion (launched in 2010), CCP has successfully helped a number of Japanese companies in the manufacturing, retail and logistic sectors, all of which have generated strong returns for its investors.
The third fund, which has already made three investments to date, will target a total of 10 deals in sectors such as consumer goods and services.
CCJP III marked its first investment with MARK STYLER Co., Ltd., a leading young women’s apparel company. It operates over 170 direct stores across Japan with an e-commerce portal and considers foreign expansion into China a major growth driver together with further enhancement of its domestic business.
CCJP III also purchased Akakura Co., Ltd., a women’s footwear retailing company, through its civil rehabilitation proceedings, and is now leading its revitalization process to grow again.
The most recent investment by CCJP III is a diagnostic drug company which is one of the leading players in the Japanese market. The company believes China/Asia will be a huge market with a growing demand for quality products and solutions to combat infection diseases.
Hironobu NAKANO, head of CITIC Capital Partners’ Japan operations, said, “Over the past twelve years we have been steadily accumulating our unique experiences in helping Japanese companies to successfully increase their corporate values by leveraging our China value-add capability. Based on our track record, we are very happy to see the final closing of CCJP III with a wider variety of sophisticated institutional investors.”