No Immediate Plans for Advantage Fund

Japanese private equity firm Advantage Partners has no immediate plans to launch a new fund despite the imminent expiry of the investment period for its existing 220 billion yen ($2.7 billion) fund, writes Reuters. The fund, due to mature in 2017, incurred a multibillion-dollar loss last year on an investment in Tokyo Star Bank, a Tokyo-based regional lender. A special vehicle set up by Advantage Partners bought the bank in 2008, writes Reuters.

Reuters – Japanese private equity firm Advantage Partners told an investors’ meeting on Wednesday that it has no immediate plans to launch a new fund despite the imminent end-June expiry of the investment period for its existing 220 billion yen ($2.7 billion) fund, three people who attended the meeting said.

An executive for the firm had said last month that tighter global regulations had made conditions for raising money less than ideal.

The company also told Wednesday’s meeting that it would not seek to extend the investment period of the five-year-old fund, according to the attendees. It completed fund-raising in 2007, at the height of a global leveraged buyout boom,

An Advantage Partners spokesman declined to comment on the content of the meeting.

The fund, due to mature in 2017, incurred a multibillion-dollar loss last year on an investment in Tokyo Star Bank, a Tokyo-based regional lender. A special vehicle set up by Advantage Partners bought the bank in 2008 in one of Japan’s largest leveraged buyouts.

Advantage Partners, which manages Japan’s largest private equity fund, had been mulling whether to seek investor approval to extend the investment period for the fund, which has yet to invest about 40 billion yen of its original 220 billion yen.

The company told investors that the remaining amount, however, could be invested in assets that the fund already holds even after the investment period expires in late June, one of the attendees said.

It also said the fund could make new investments after the June expiry if it indicates an intention to invest to the target before that time, he added. ($1 = 81.1500 Japanese yen) (Reporting by Junko Fujita; Editing by Edmund Klamann)