Japan's REVIC, NCB, DBJ set up $42m fund

The fund, which translates as the NCB Kyushu Activation Fund, will be administered by NCB Capital, a joint venture between the three backers and boutique PE firm Dogan Advisors. DBJ, NCB and REVIC are the LPs in the fund.

The new vehicle will have a seven-year lifespan and will target local companies in Kyushu, Japan's third-largest island. According to a release, it will offer growth capital in the form of mezzanine financing, as well as providing succession planning solutions.

Fukuoka-based Dogan typically teams up with state-backed groups in forming regional funds to support local businesses. In September 2013 it reached a final close on its JPY3.3 billion Kyushu BOLERO (Buyout for local enterprise and reform organization) Fund 2. This was backed by the Organization for SMEs and Regional Innovation Japan, a government agency under the Ministry of Economy, Trade and Industry (METI).

REVIC - formerly known as the Enterprise Turnaround Initiative Corporation of Japan (ETIC-J) - was set up in the wake of the financial crisis and is also engaged in direct investment in distressed Japanese firms. It is supervised directly by the cabinet office and has JPY1.2 trillion in assets.

Meanwhile, DBJ was launched in 2013 and falls under the remit of the Ministry of Finance. It typically provides mezzanine loans and equity capital and can invest up to JPY300 billion.

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• Topics
• North Asia
• Fundraising
• Mezzanine
• Fundraising
• DOGAN Advisors / DOGAN Investments
• The Development Bank of Japan (DBJ)
• Mezzanine
• Japan