Unison Ups Fund Target, Eyes Placement Agent –

Unison Capital Inc., the firm that is looking to do buyouts in Japan, may increase the size of its debut fund to $400 million from $250 million after receiving greater-than-expected enthusiasm from Japanese institutional investors, according to Unison partner John Ehara.

In an informal interview, Mr. Ehara said his firm likely will select a placement agent within the next two weeks. Unison Capital began searching for a fund raiser late last year, claiming conditions in Japan were ripe for buyout opportunities (BUYOUTS Dec. 21, 1998, p. 1).

Pre-marketing by Mr. Ehara, who is based in Tokyo, has led him to believe that many Japanese institutions are eager to invest in private equity vehicles.

Japanese Begin to Buy In to Buyouts

Under the recent “Big Bang” financial regulatory reforms in Japan, institutional investors such as pension plans and university endowments now may invest in a more diverse range of assets, including private equity. Other Japanese financial groups, such as Mitsubishi Corp., also are hoping to attract commitments from these institutional investors to fuel first-time private equity endeavors (see story, p. 5).

The firm will focus on buying divisions of Japanese corporations, which Mr. Ehara has said are now looking for liquidity. Partners at the firm, all of whom are Japanese nationals and ex-Goldman, Sachs & Co. bankers, have said they understand Japanese business culture well and can deal with management there more effectively than an outsider unfamiliar with local sensibilities.