Japanese PE Firm New Horizon Raising Second Fund

(Reuters) Japanese private equity firm New Horizon Capital plans to raise up to 50 billion yen ($560 million) for a second fund for investments in small and medium-sized firms, its chief executive said on Monday.

Yasushi Ando told the Reuters Japan Investment Summit that its first fund would likely close in August or September with about 12 billion yen, and it would look to raise 30 to 50 billion yen for a second fund by March next year.

“After raising money in the mother market, we will then look to have that matched by overseas funds,” Ando said.

Ando said he was encouraged by a provision in the government’s new growth strategy unveiled this month that paves the way for the state pension and other public financial institutions to invest in private equity funds.

Ando spun off New Horizon in late 2006 from Phoenix Capital, another private equity firm he started that had grown to six funds worth a combined 220 billion yen.

New Horizon bought Hitachi Housetec, a maker of system kitchens, water softeners and other home equipment, from Hitachi Chemical Co (4217.T), in late 2007, its only deal to date.

(Reporting by Nathan Layne; Editing by Edwina Gibbs)