CLSA plans $500m Japan fund

Hong Kong-based CLSA Capital Partners plans to start fundraising for its second buyout fund focused on Japanese companies in the next few months.

The fund will target commitments of $500 million and will seek to acquire controlling stakes in seven to eight mid-sized Japanese companies, a source close to the matter confirmed. The news was first reported by Bloomberg.

The fund follows CLSA Sunrise Capital, the firm’s first vehicle focused on investments in Japan. Sunrise Capital is a $350 million fund almost fully invested across six transactions.

A few of CLSA’s Japanese portfolio companies include Baroque Japan, a retail apparel chain; Everlife, a health supplement company; Nihon Interground, a construction and civil engineering company; and Trustex, which engages in outsourcing of logistics and provides other services such as warehouse inventory movement.

CLSA Capital Partners is the alternative asset management arm of investment bank CLSA Asia-Pacific Markets. The firm manages pan-Asian growth capital funds, a pan-Asian mezzanine fund, a regional fund focused on opportunistic real estate and a Japan-focused private equity fund. It manages assets of more than $2.3 billion.