New Japanese Buyout Fund

Shinsei Bank and the Development Bank of Japan have formed a $141 million private equity fund, which will focus on buyouts and growth equity for mid-sized Japanese companies.



Shinsei Bank, Limited, ' Shinsei Bank', and the Development Bank of Japan ('DBJ') today announced the establishment of the Raffia II L. P. private equity fund. The fund will invest in medium-sized companies in the form of buyouts or by providing growth capital and business revitalization, and will be managed by a subsidiary of Raffia Capital Inc.('Raffia Capital').

Providing a variety of financial services to private- and public-sector companies and financial institutions, investment banking is one of Shinsei's core areas of operations, and Shinsei has been particularly active in the area of private equity investment. The business focuses on investment operations including buyouts, growth capital, pre-IPO, business revitalization and listed stocks, while also providing a variety of other financial services including M&A advisory services.

Slated for privatization in October 2008, DBJ provides integrated investment and financing services to private- and public-sector companies and financial institutions, with the aim of enriching Japanese society by creating new economic wealth and social value. As part of this mission, DBJ's strategy is to further strengthen its investment business by expanding investment opportunities with long-term investments that allow the bank to maintain a unique, neutral position.

Established in 2002, Raffia Capital manages Raffia Investment Business Limited Partnership, whic invests in medium-sized companies in Japan and Taiwan and provides management support to the companies in which it invests. Raffia Capital became a joint venture of Shinsei and DBJ in October 2007, when previous shareholder Itochu Corporation sold its entire shares to DBJ. The partnership will make it possible for the fund's investment activities to capitalize on both banks' diverse financial services and experience in private equity investing. Both banks see this bringing new investment opportunities, and will strive to aggressively develop this business by providing management support to increase the corporate value of the companies in which the fund invests.