Japanese PE firm J-STAR in the market to raise $386m fourth fund: Report

Shibuya, Tokyo, Japan. Photo by Jezael Melgoza on Unsplash

Tokyo-headquartered alternative asset manager J-STAR, a mid-market player in the Japanese private equity market, is targeting to raise about $386 million (42 billion yen) for its fourth buyout fund, according to a Private Equity International report.

The fund, J-STAR No.4 Investment LP, follows its predecessor that raised $300 million (32.5 billion yen) in 2016, tapping strong domestic demand amongst Japanese banks, insurance firms, fund of funds, and other corporations.

The second fund in the series had received commitments worth $205 million in 2011 while the firm’s debut buyout fund collected $113 million (12.25 billion yen) in 2005.

A query sent to J-STAR on its fourth fund did not elicit any response.

The firm looks at equity investments between 1 billion yen and 3 billion yen but depending on the nature of the business and the deal situation, it may consider opportunities outside of this range, according to its website.

J-STAR, an independent and partner-owned asset manager, was founded in 2006 in Tokyo and provides capital to small and medium enterprises with a corporate value ranging from 3 billion yen to 10 billion yen. Since its founding, it 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.