Tokyo-headquartered alternative asset manager J-STAR, a mid-market player in the Japanese private equity market, has closed its fourth buyout fund at the hard cap of 48.5 billion yen ($433 million), according to an AVCJ report.
DealStreetAsia has sent a query to J-STAR on the reported close of its fourth fund – J-STAR No. 4 Investment LP – but has not received any response yet.
The fund was launched in June and followed its predecessor that raised $200 million in 2016, tapping strong domestic demand among Japanese banks, insurance firms, fund of funds, and other corporations.
The firm’s second fund raised $205 million in 2011, while its debut buyout fund collected $113 million in 2005.
J-STAR, an independent and partner-owned asset manager, looks at equity investments between 1 billion yen ($9.1 million) and 3 billion yen ($27.4 million) but could consider more depending on the nature of the business and the deal situation.
Since its founding in 2006, the firm has invested and/or supported more than 46 transactions in various industries such as consumer durables, services, healthcare, media, and manufacturing.
Its portfolio companies include clothing retailer WEGO Co Ltd, automotive parts manufacturer Honest Co Ltd and restaurant chain operator Echigoya Co Ltd. Last week, the firm announced that its portfolio company Tokyo Onkyo Holdings had acquired the development and manufacturing of earphones and audio-related products from Tokyo Sonic.
J-STAR has been very active in the Japanese private equity space. This year alone, it made news when it exited Tokai Trim, one of its portfolio companies, to domestic hotel chain operator Rembrandt Holdings.
It also acquired content creation firm Kurashino, lifestyle media publisher 1k, and user behaviour analyst CRAFTA for an undisclosed amount in October.
The Japanese private equity firm said it will combine the three companies’ strengths – strong content creation by Kurashino, solid media management infrastructure by CRAFTA, and 1k’s media brand – into an acquisition platform for the sector.