Japan’s J-Star backs campervan manufacturer
Japanese lower-middle market private equity firm J-Star has confirmed an investment of undisclosed size in Toy Factory, a campervan designer and manufacturer.
J-Star is investing via its fourth fund, which closed on JPY 48.5bn (USD 338m) in 2019 and typically writs cheques in a range of JPY 1bn to JPY 3bn. Fund V closed on JPY 75bn in April.
Founded in 1995, Toy Factory is considered a leading player in its space. It currently markets about 20 different models, mostly in cooperation with Toyota and Nissan. Its flagship line, Baden, is a seven-passenger vehicle based that can sleep five.
Toilets and kitchenettes are common features as are specialised transportation-ready solar panels, which are sourced through a partnership with Sharp. The company has the largest share of the local campervan market, according to a statement. It has been exporting around Asia since 2011.
The plan is to build a new factory, develop a new partnership with Fiat, and open an imported vehicle dealer in the greater Tokyo area. The company also aims to open a new branch in Toki, a second dealership in the Chubu region, and develop the export business.
Ongoing pandemic-related travel difficulties coupled with a weak yen are expected to bolster Japan’s domestic tourism and recreation space. Recent investment activity hoping to leverage this notion includes PAG’s acquisition of theme park operator Huis Ten Bosch.
In July, Taiwanese travel start-up KKday, which counts Japan as its largest market, raised USD 75m predicting domestic travel in the country would remain strong as borders open in the fourth quarter this year. KKday has launched 10,000 tour package offerings in Japan since the start of the pandemic.
J-Star was founded in 2006 by CEO Gregory Hara, managing partners Kenichi Harada and Hideaki Sakurai, and partner Tatsuya Yumoto as a spinout of the small-cap buyout program at Japanese VC firm Jafco. It has historically favoured manufacturing businesses with sufficient brand power to expand overseas.
J-Star’s experience in the auto space includes the acquisition of components remanufacturing company Honest in 2018 and an investment in car seat covers maker Tokai Trim in 2013. Tokai Trim was exited for an undisclosed sum in 2019 to hotel chain operator Rembrandt Holdings.
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