Japan set for first Sharia-focused PE fund

According to a release, the so-called PNB-Inspire Ethical Fund is targeting small-to-medium sized Japanese firms with the potential to expand into Islamic markets in Southeast Asia. Sectors of focus include consumer products, agriculture and IT & communications.

The fund - which is being managed by Inspire - has already reached a first close of JPY4.95 billion ($48.70 million) and aims to reach its JPY6 billion target by the end of this year.

Japanese regional finance institutions Oita Bank, Hiroshima Bank, Shonai Bank and Hokuto Bank are listed among the fund's LPs, alongside the Organization for Small & Medium Enterprises and Regional Innovation, Japan (SMRJ).

This is not the first time Islamic finance has been used as an entry point by Japanese investors looking to tap into Southeast Asian growth.

Last month, Sumitomo Mitsui Banking Corporation, a unit of Sumitomo Mitsui Financial Group, established an Islamic finance arm in Malaysia. Prior to that, in 2010, SBI Holdings launched an Islamic investment fund with the Ministry of Finance of Brunei Darussalam.

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• Topics
• North Asia
• Southeast Asia
• Fundraising
• Japan
• Fundraising
• Malaysia