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Finance

Japan buyout fund sees money flowing in from abroad

Stuck with low interest rates, global players hunt for high returns

TOKYO -- A buyout fund set up by Nippon Sangyo Suishin Kiko, an investment firm focused on small and midsize businesses, has raised roughly 60 billion yen ($532 million) -- more than 10 billion yen greater than expected -- from investors, including many from abroad.

More than half the money came from overseas investors such as financial institutions and pension funds in North America and Europe. The fund will target companies located outside of Japan's major cities.

 Amid low interest rates around the globe in general, many institutional investors are putting money into buyout funds in search of high yields.

NSSK was founded in 2014 by a team led by former executives at U.S. private-equity firm TPG Capital.

Another fund involving NSSK has raised around 5 billion yen, an amount larger than expected. It will target smaller companies in the Chubu region, including Nagoya, and the Hokuriku region along the Sea of Japan. Its investors include many regional banks.

(Nikkei)

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