Mizuho Capital raises $170m for third mezzanine fund

Last week, the government-backed Organization for Small & Medium Enterprises and Regional Innovation Japan (SMRJ) said it had committed JPY5 billion to the fund - Mizuho Capital Partners Mezzanine 3 - which was reported in October to be seeking JPY30 billion in total.

The capital raised so far includes additional commitments from Mizuho Bank and undisclosed institutional investors. The fund is still taking contributions from other LPs, a statement said.

The vehicle is the successor vehicle to MH Mezzanine Investment Enterprise II, a JPY17.7 billion fund launched in June 2011. Fund I closed in November 2005 at JPY25.3 billion. Like its predecessor, Fund III will focus on companies in need of extra capital to both expand their business in Japan and overseas, but are unable to obtain sufficient financing from domestic banks.

Mizuho's is not only Japanese mezzanine fund in the market. Tokio Marine & Nichido Fire Insurance is targeting JPY30 billion for its first mezzanine fund, with a view to backing corporate acquisitions. It reached a JPY25 billion first close last May.

Also in late 2013, the UK's Intermediate Capital Group (ICG) teamed up with Nomura to manage a Japan-focused mezzanine fund, with each party contributing JPY10 billion ($98 million).

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• Topics
• Mezzanine
• Fundraising
• North Asia
• SME
• Japan
• Mezzanine
• Mizuho Capital
• Fundraising