Risa targets $139m for Japan corporate solutions fund
Risa Partners, a Japanese mid-size investment bank controlled by a subsidiary of NEC Corporation, has launched its fifth corporate solutions fund with a target of JPY15 billion ($139.5 million).
The vehicle, Risa Corporate Solutions Fund No. 5, has initial capital commitments of JPY7 billion, according to a statement. The hard cap has been set at JPY20 billion.
Business succession is a key part of the strategy, chiefly situations in where there are no members of a younger generation willing to take over from an aging founder, where youthful founders sell up to pursue new challenges, or where founders remain involved but bring in PE investors to achieve expansion objectives. Risa will also provide companies with pre-IPO growth capital, lead corporate revitalization or restructuring efforts, and carve out non-core subsidiaries of local corporates.
Risa claims to be able to construct custom-made deals that meet the needs of small- and medium-sized enterprises (SMEs), leveraging the lending and advisory capabilities of its broader group. The bank also has alliances with 184 financial institutions throughout Japan, primarily regional banks, and with 56 government-backed corporate revitalization funds.
The firm raised JPY21.85 billion for its first corporate solutions fund in 2006, and the fourth closed at JPY16.35 billion in 2016. Across the entire fund series, Risa has raised JPY70 billion and invested approximately JPY68.5 billion in 35 projects. Fund IV is almost fully deployed. It has made 10 investments – six growth capital and four business succession – in areas such as wholesale distribution, software development, restaurant chains, manufacturing, and medical equipment.
Risa also has an investment management business in Singapore that works with Japanese corporates looking to expand in Southeast Asia. Last year, it committed $50 million to a $180 million fund-of-funds raised by Vertex Ventures, a VC arm of Singapore's Temasek Holdings. The vehicle will support Vertex's global portfolio of VC vehicles.
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