Carlyle Plans to Raise $2 Bln for Japan Investments -Sources


U.S. private equity firm Carlyle Group LP is planning to raise 200 billion yen ($2 billion) for a third Japan fund to succeed its seven-year old second fund, with Japan’s aggressive monetary easing helping to boost investor interest, Reuters is reporting.

(Reuters) – U.S. private equity firm Carlyle Group LP is planning to raise 200 billion yen ($2 billion) for a third Japan fund to succeed its seven-year old second fund, with Japan’s aggressive monetary easing helping to boost investor interest, people with direct knowledge of the matter said.

Carlyle, the only global private equity firm with funds specifically designated only for Japanese investments, aims to tap investor appetite for alternative investments as Prime Minister Shinzo Abe’s government pushes monetary expansion to fight deflation, keeping interest rates low.
A Carlyle official in Japan declined to comment.

Carlyle co-founders William Conway, Daniel D’Aniello and David Rubenstein, as well as other senior officials, will be meeting investors in Tokyo on Thursday to discuss its new Japan fund as well as its global strategy, said the people, who asked not to be identified as the information was not public.

The new fund would succeed Carlyle’s second Japan fund, Japan Partners II, which was launched in 2006. The fund’s investment period is due to end this year and has already exited several of its investments, including software maker Broadleaf Co Ltd and restaurant chain operator Chimney Co Ltd.

Carlyle’s second Japan fund originally raised 215.6 billion yen but was reduced to 165.6 billion yen due to a lack of deals, which dried up in the wake of the global financial crisis.

Carlyle is raising the new fund at a time when investors have easier access to cash with low interest rates, said one investor who is considering participating in the fund. ($1 = 102.5450 Japanese yen)

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