Japan's Tokio Marine closes Fund V at $466m

TMCAP2016 was established in October of last year with a target of JPY50 billion and received initial commitments totaling JPY29.1 billion. A second close of JPY41.7 billion came in January. The first investment from the vehicle was completed in December with the acquisition of Ropia, a manufacturer of chilled deserts distributed nationwide through convenience stores and supermarkets.

At the time of the second close, Tokio Marine had yet to decide whether to market to overseas investors as well, with a view to diversifying the LP base. However, demand from domestic institutional players was sufficiently strong that there was no space for offshore capital.

Of the 34 LPs, 17 are regional banks and they account for just under one third of the total corpus, according to a source familiar with the situation. Other commitments came from pension funds, city banks, trust banks, insurance companies, fund-of-funds and corporates. More than 80% of LPs in Tokio Marine’s previous fund re-upped in the new vehicle.

The private equity firm raised JPY23.3 billion – from 18 LPs – for its previous fund, which closed in 2013. The GP seeks control positions in middle market private companies in Japan, typically working in conjunction with existing management teams of established businesses that have steady growth and a strong or niche market position.

Japan private equity fundraising came to $4.9 billion in 2016, up from $3.4 billion the previous year, AVCJ Research’s records show. It is the highest annual total – bar 2013 – since before the global financial crisis. A host of middle-market managers are currently seeking capital for new vehicles.

In February, CITIC Capital Partners announced a final close on its third Japan fund at the hard cap of JPY30 billion. This came shortly after The Longreach Group reached a first close of around $200 million on its third North Asia-focused fund, which has a particular focus on Japan. The full target is $650 million.

Other GPs in the market include Advantage Partners, CLSA Capital Partners, J-Star, NSSK, Polaris Capital and Ant Capital Partners.

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• Topics
• North Asia
• Fundraising
• Buyout
• GPs
• LPs
• Japan
• Tokio Marine Capital