Japanese PE firm J-STAR closes fourth buyout fund at $433m: Report

City centre, Tokyo (Japan). Photo: Cory Schadt/Unsplash

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.

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.

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.