HONG KONG, April 23 (Reuters) - Global private equity firm Bain Capital has closed its maiden Japan-focused fund, which will target mid-sized companies, at 110 billion yen ($1 billion), a person with direct knowledge told Reuters on Friday.
Bain, as manager of the fund, committed 10 billion yen to the total capital and will invest an additional 12.5 billion yen alongside the fund, the person said, declining to be identified as the information is not public.
The Boston-based investment firm will use the fund to target growth and buyout deals in the world’s third-largest economy, the person added.
Bain declined to comment. The fundraising was first reported by private equity information provider AVCJ.
Its Japan-focused fund comes as Japanese companies remain under pressure to maximise corporate returns following a push for better governance by the government and activist investors.
The fund will also solidify Bain’s dealmaking power in an increasingly competitive market for global investors, although very few have one dedicated to the country.
Carlyle Group, which has been active in Japan’s upper-mid-sized market, raised 258 billion yen last year for its fourth Japanese buyout fund, the largest such fund according to AVCJ data.
Rivals Blackstone Group and Apollo Global Management have also poached experienced dealmakers from Bain in the last few years to launch their own local teams.
Bain entered Japan in 2006 and has won a number of bidding wars in recent years, including leading a consortium to buy Toshiba Corp’s chips business for $18 billion in 2018 and a $1.2 billion acquisition of nursing-home operator Nichiigakkan last year.
Last year, Bain also privatised Showa Aircraft Industry Co Ltd for $817 million and acquired an 85% stake in Kirindo Holdings for $318 million including debt, Refinitiv data showed.
It is currently looking at formulating a bid to acquire Toshiba, Reuters reported this week.
Reporting by Kane Wu; Editing by Krishna Chandra Eluri