CLSA closes fourth Japan fund at $450m

The vehicle – Sunrise Capital IV – was significantly oversubscribed with existing investors accounted for 82% of the commitments, according to a statement. The LP base comprises financial institutions, fund-of-funds, endowments, foundations, and family offices from Asia, North America, and Europe.

Having closed the first Sunrise Capital fund at $350 million in 2006, CLSA CP raised $210 million for the second and $400 million for the third. There has been no strategy shift between Funds III and IV. The GP will continue to target companies with enterprise valuations of JPY5-15 billion ($47-141 million) and strong potential for expansion within Japan.

“With this additional capital, we will continue to pursue our dedicated private equity strategy of acquiring well-established Japanese mid-cap companies with strong growth potential, and to focus on unique investment opportunities created by COVID-19,” said Megumi Kiyozuka, president and representative director of CLSA CP in Japan.

The Sunrise Capital funds have made investments in approximately 30 companies to date, including stand-alone and follow-on deals. Recent activity includes the acquisition of fitness club operator Worldplus, which operates 125 gyms under the World brand. CLSA CP looked past the negative impact of COVID-19, stating that it saw attractive long-term growth prospects for health and fitness.

Earlier in the year, the private equity firm bought Assist, a marketplace that facilitates sourcing helpers for daily household jobs, and Earth Technology, an IT services provider. A significant exit came towards the end of 2019 as automotive tools retailer Worldtool – which primarily operates under the Astro Products brand – was sold to home improvement chain Royal Homecenter.

Japan-focused managers have raised $6.6 billion so far this year, already exceeding the 2019 full-year total of $4.8 billion, according to AVCJ Research. Sizeable contributions came from The Carlyle Group and Advantage Partners, which closed their latest country vehicles at $2.3 billion and $790 million, respectively. However, these fundraising processes were largely completed before the pandemic hit, curtailing the ability of LPs to conduct on-the-ground due diligence.

Monument Group, which served as placement agent for Sunrise Capital IV, noted this was the first “virtual fundraise” it had advised on. “It could not have gone more smoothly,” said Niklas Amundsson, a partner at Monument. “The raise was very quick, with many high-quality new and returning investors, indicative of their confidence in Sunrise and the continuing interest in mid-market opportunities in Japan.”

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• Topics
• North Asia
• Fundraising
• Buyout
• GPs
• Japan
• CLSA Capital Partners