Japanese mid-market PE firm NSSK raises $665m for third fund

Japanese mid-market PE firm NSSK raises $665m for third fund

Dotonbori, Chuo Ward, Osaka, Japan. Photo by Richard Tao on Unsplash.

Japanese buyout firm Nippon Sangyo Suishin Kiko (NSSK) announced that it secured 100 billion yen (about $665 million) in total commitments for its third investment vehicle NSSK III.

The fund, which was launched in May 2021, managed to close above its target despite global uncertainties, NSSK said. It secured commitments from existing and new investors.

NSSK III has already made five investments in the healthcare, digital marketing, water, digital learning, and specialty packaging sectors, per the announcement.

In 2017, NSSK closed its second fund with capital commitments of 60 billion yen ($543 million). NSSK had then said that the fund was oversubscribed and attracted institutional investors from North America, Europe, and Asia.

The latest fund is likely to continue investing mainly in Japan-based small to medium-sized companies.

For NSSK II, the firm said its portfolio companies comprise 15,000 employees, 70% of which are women. Additionally, 39% of the CEO or COO positions are held by women, which highlights the PE firm’s commitment to gender opportunity.

NSSK’s first fund, which was formed in 2015, was invested in US.Mart – an operator of indoor playground facilities and franchisor of 100 Yen stores – and shopping and entertainment arcade development Ise Sea Paradise.

NSSK manages the NSSK funds and five impact funds that focus on regional vitalization in Japan. The impact investment initiative focuses on business succession and small and medium-sized companies with high growth potential in different regions across the country.

The firm said it will continue to leverage its regional network, experience, and track record in business succession and special situations to capture attractive investment opportunities created by the current market environment.

“In addition, we are seeing very interesting opportunities in carve-outs and public-to-private transactions as well,” NSSK said.

In a separate announcement, NSSK said it has agreed to sell all its shares in funeral services companies Hakkoden Holdings and Tokaitenrei to Japanese funeral halls operator Tear Corporation.

Edited by: Padma Priya

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