Carlyle raises $2.3b for fourth Japan buyout fund

Carlyle Japan Partners IV (CJP IV) was launched in July 2019 and reached a first close in the third quarter of that year. CJP III was smaller than CJP II, which raised JPY165.6 billion in 2006. Carlyle’s first Japan fund launched in 2001 and raised JPY50 billion.  

The private equity firm has confirmed a number of leadership changes to coincide with its fresh mandate for the country. Longstanding investment team members Takaomi Tomioka and Hiroyuki Otsuka have been named deputy heads of the Japan buyout advisory, effective January 2020. They will work closely with Kazuhiro Yamada, head of Carlyle Japan.  

Tomioka, who has been with Carlyle 17 years, will be responsible for succession deals and mid-cap buyouts, while Otsuka, who has been with the firm 14 years, will focus on corporate carve-outs and large-cap buyouts. “We are seeing growing opportunities in Japan across succession and carve-out deals, and with this larger fund and strengthened leadership, we believe we are well-positioned to capture these,” Yamada said in a statement.

Carlyle’s Japan team now stands at about 20 investment professionals, including Tomofumi Matsuyama, a former executive at Morgan Stanley, who joined in 2018 as a managing director responsible for large carve-outs in technology and industrials. The team is said to have made 26 investments and realized 18 exits. Exits include the sale of branded bean sprouts retailer Meisui Bijin earlier this year to a strategic buyer for an undisclosed sum.

CJP IV will focus on upper mid-market opportunities across consumer, industrials, healthcare, technology, media, and telecoms. It will also pursue large-cap investments on an opportunistic basis. Carlyle, which is the only global GP with a series of yen-denominated buyout funds, traditionally backs Japanese companies that are seeking overseas expansion by enhancing their operational efficiency and strengthening management.

Carlyle claims to have invested more than JPY300 billion in Japan, including co-investments, since opening its Tokyo office in 2000. Last year, CJP III closed three deals, including coated abrasive manufacturer Sankyo Rikagaku and cosmetics manufacturer Tokiwa. The fund also joined local investment bank Nomura in an approximately JPY52.1 billion acquisition of beer maker Orion Breweries. Tomioka is credited with driving the Orion deal. 

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