CITIC Capital Partners, the private equity arm of CITIC Capital Holdings Ltd, has closed its third Japan buyout fund, CITIC Capital Japan Partners III, at a hard cap of JPY30 billion (US$267 million), the firm said in an announcement.
The amount raised exceeded its initial target of JPY25 billion (US$222 million). The fund's limited partners includes sovereign wealth funds, financial institutions, pension funds and fund–of-funds.
"We are delighted by the strong support we received from both existing and new investors. Their support is…a validation of the tremendous investment opportunity presented by Japanese companies requiring backing in their international expansion, and our deep network of China relationships. We look forward to expanding our Japan franchise through CCJP III,” said Yichen Zhang, chairman and CEO at CITIC Capital.
The third fund has already made three investments and aims to complete a total of 10 investments. It focuses on sectors benefiting from strong growth in China's growing domestic consumption industries, including consumer goods, services and manufacturing.
The three investments completed so far include women's footwear retailing company Akakura Co., Ltd, women's apparel company Mark Styler Co., Ltd, and an unnamed diagnostic drug company, all in Japan.
CITIC Capital Partners launched its first Japan buyout fund of JPY16.9 billion in 2004, and a second fund in 2010 of JPY18.2 billion, targeting Japanese companies in the manufacturing, retail and logistic sectors.
The firm operates in China, the U.S. and Japan, managing US$4.5 billion of committed capital on behalf of over 60 international investors.