Qatar Investment Authority (QIA) and Japan’s ORIX Corporation (ORIX) announced Tuesday that they have entered into an agreement to launch a commitment-based private equity (PE) fund (OQCI Fund LP). The total fund size will be the yen equivalent of USD 2.5 billion, with QIA committed to contributing USD 1 billion of the fund’s capital
The fund will invest in Japanese companies, primarily targeting business succession, privatization of listed companies, and carve-outs (the transfer of business divisions or subsidiaries from large corporations), with an enterprise value investment size of at least 30 billion yen (approx. 200 million USD) per investment.
This marks the first time that ORIX has launched a fund that welcomes capital from an international third-party investor for domestic private equity investment in Japan. It is also the first time QIA has invested in a domestic private equity fund focused solely on the Japanese market.
Investment decisions for the fund will be made by OQCI GP Ltd. (the GP), which will act as the general partner of the fund. ORIX and QIA will be the only two investors (LPs) in the fund, committed to contributing 60% and 40% of the capital, respectively. ORIX will provide the GP with introductions to potential investment targets, post-investment monitoring, and advisory support for portfolio companies.
CEO of QIA Mohammed Saif Al Sowaidi said: “Japan represents a core component of QIA’s long-term private equity strategy. With disciplined valuations, a deep pipeline of governance-driven deals, and growing global investor interest, we see this as an exceptional opportunity to partner with best-in-class Japanese businesses to create value. We are pleased to be the first international partner in ORIX’s inaugural private equity fund in Japan in its 60-year history. This partnership will enable both parties to capitalize on market opportunities and support ORIX’s ambition to build a thriving asset management initiative.”
“We are honoured to enter into this partnership with Qatar Investment Authority today. QIA is a significant and influential sovereign wealth fund, and we are pleased to be able to help it increase its investments in the Japanese economy. ORIX has built up considerable expertise in private equity investment in Japan,” Representative Executive Officer, Chairman and CEO of ORIX Makoto Inoue said.
“This partnership is the next logical step on the path to improving the corporate value of companies with high-growth potential. Moreover, it will contribute to Japan’s broader industrial development. Increasing the portion of third-party funds in ORIX’s investment portfolio will enhance capital efficiency and help further grow our asset management business. This partnership is a key strategic move to help realize our long-term growth strategy,” he added.
Following the guidelines published by Japan’s Ministry of Economy, Trade and Industry (METI) and the request for management reforms by the Tokyo Stock Exchange, Japan’s M&A market has been seeing a surge in listed companies going private, corporate reorganizations, and carve-outs. As deal sizes become larger, and against the backdrop of Japan’s stable economy and society, an increasing amount of foreign capital has been flowing into the market.
ORIX and QIA will together aim to enhance the corporate value of companies with high-growth potential and contribute to the advancement of Japanese industry. They will also explore opportunities for collaboration across other fields.
