Carlyle Group LP (NASDAQ:CG) is looking to raise 200 billion yen ($2 billion) with the launch of a third Japan fund, reports Reuters.
Carlyle Group’s proposed $2 billion fund is set to succeed its earlier seven-year old fund.
Carlyle Group LP (NASDAQ:CG)’s proposal comes in the wake of potential revival in the Japanese market, bolstered by Prime Minister Shinzo Abe’s pledge to boost the country’s struggling economy through a series of aggressive monetary and fiscal stimuli.
The Prime Minister’s plan is popularly called “Abenomics”, which have resulted in a weakening of the Japanese yen, which industry figures said has led to more competitively priced deals.
Goldman Sachs Group, Inc. (NYSE:GS) too in its recent report revised upwards its earnings estimates for Japan by 4 percent for FY 2013. All these have galloped investors’ interest and Carlyle Group LP (NASDAQ:CG) aims to tap investors’ interest in alternative investments.
Washington-based Carlyle becomes the only international buyout firm with a specific focus on Japan.
Carlyle Group (C)’s Proposal Of New Funds
Carlyle Group LP (NASDAQ:CG)’s proposed new Japan-focused fund would succeed its second Japan fund, Japan Partners II, which was launched in 2006 originally raising 215.6 billion yen. The fund’s investment period is due to end this year
Carlyle Group LP (NASDAQ:CG)’s first ‘Carlyle Japan Partners I’ was raised in 2001. The proposed new fund would be larger than CJP II, while it would be four times bigger than CJP I.
The second Japan fund has already exited several of its investments, including software maker Broadleaf Co Ltd (TYO:3673) and restaurant chain operator Chimney Co Ltd. During March, Carlyle has successfully listed the automotive software company, Broadleaf, on the Tokyo Stock Exchange.
Historically, conglomerates in Japan have been reluctant to sell non-core businesses and owners are wary of loading companies with too much debt.
Some of the leading firms experienced challenges in the past with Japan focused funds. For instance, Advent International had to unwind its 60 billion yen fund in 2011, after failing to strike any deals in Japan. Similarly 3i Group had to pull out of Japan in 2003 after raising a Japan fund in 2000.
Quoting unconfirmed sources, Reuters reports Carlyle Group LP (NASDAQ:CG)’s senior officials including its co-founders William Conway, Daniel D’Aniello and David Rubenstein are set to meet investors in Tokyo on Thursday to discuss its new Japan fund as well as its global strategy.