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Jafco buys back $577m in shares from investors

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Japanese venture capital firm Jafco has agreed to buy back JPY63.8 billion ($577.4 million) worth of shares from its major shareholders, including Nomura Holdings.

According to a filing, Jafco will acquire shares representing about 32% of its total issued capital at the July 27 closing price of JPY4,560. The firm's stock gained as much as 18% since announcement of the transaction and last closed at JPY5,280 apiece.

Nomura, which is Jafco's largest shareholder, sold its entire 17.6% interest for JPY38.7 billion. Separately, Nomura Research Institute (NRI) agreed to divest JPY22.6 billion worth of shares.

Although Jafco will no longer be an equity affiliate of Nomura, the buyback will not impact the existing business relationship between the two groups. According to Reuters, Takumi Kitamura, Jafco’s CFO, confirmed that his firm would retain both its 34% holding in Normura Real Estate and its 37% holding in NRI.

Jafco manages 37 funds and claims some JPY433 billion in committed capital. Last year, the firm reached a first close of JPY41 billion on its fifth global VC and buyout fund.

Recent activity includes a $12 million investment in Singapore advertising technology company AdAsia. It was the GP’s biggest-ever company commitment in a single round and was said to be the largest disclosed Series A for any Asian adtech company outside of China.

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