Advantage Partners from Japan closes US$790M in the sixth buyout fund

by Felicia Calle

A Japan-based private equity firm, Advantage Partners, has recently closed 85 billion yen (US$790 million), according to an announcement that was made on Monday.  It added that it received commitments above 75 billion yen target as well as 85 billion yen hard cap.

This fundraising, which was completed on April 23rd, saw investments from limited partners (LP), including insurance companies, banks, pension funds, asset management firms, global funds of funds, and other institutional investors. The firm stated that the LP base mainly comprised investors that had committed to predecessor funds.

Its general manager will continue focusing on the Japanese middle market, which they believe is the most attractive segment of the market. They will also look at multiple sectors across several strategies, including public-to-private, corporate carve-outs, and business succession.

“Global markets are currently in deep turmoil as a result of the spread of the novel coronavirus, and the Funds will tailor their investment strategy to best meet the needs of the current business environment, cognizant that conditions will continuously evolve during the next ten years,” the firm stated.

The buyout funds from Advantage Partners have invested in local businesses such as PR agency Material Group, Tokyo Central Japanese Language School, Ishii Sports, and drinking water distributor Cosmolife, among others.

Advantage Partners has also expanded to the Southeast Asia region with investments in Malaysia-based metal solution provider, EKO Group, home care products manufacturer, also based in Malaysia, Plastic Centre, and Vietnam-based fashion retailer Elise.

In October last year, financial services major Tokyo Century invested in Advantage Partners’ parent company and acquired 14.9% of it.

Advantage Partners stated earlier that it hoped to transition from a founder-controlled firm to a long-term sustainable institutional platform. This investment from Tokyo Century was definitely critical to providing long-term stability.

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