#Qatar’s QIA, Orix to Start $2.5 Billion Japan-Focused PE Fund - Bloomberg

Qatar’s QIA, Orix to Start $2.5 Billion Japan-Focused PE Fund - Bloomberg

Qatar’s sovereign wealth fund is teaming up with Orix Corp. to start a $2.5 billion private equity fund targeting Japanese companies, people familiar with the matter said.

The investment is Qatar Investment Authority’s first in a Japan-focused private equity fund, said the people, who asked not to be identified before an announcement. Orix will provide 60% of the capital, with QIA contributing the rest, the people said.

QIA joins a growing list of global investors seeing growing potential in buyouts in Japan. Firms from Blackstone Inc. to KKR & Co. have been stepping up investments in the country, where a corporate governance drive is pushing conglomerates to sell non-core assets and aging business owners are struggling to find successors.

The fund will invest in companies with an enterprise value of at least ¥30 billion ($195 million), the people said. It will look for opportunities in business succession, listed companies being taken private and carve-outs by larger firms, according to the people.

Both Orix and QIA will be limited partners, with investment decisions to be made by a third entity, OQCI GP Ltd., the people said.

Tokyo-based Orix has operations ranging from banking to leasing and real estate. Partnering with QIA will help it to use its capital more efficiently than by making the entire investment with its own balance sheet, the people said.