– ORIX Corporation and Qatar Investment Authority (QIA) announced the launch of a new commitment-based private equity fund, “OQCI Fund LP,” with a total size equivalent to USD 2.5 billion.
– The fund will invest in Japanese companies targeting business succession, privatization of listed companies, and carve-outs from large corporations.
– Each investment will target companies with an enterprise value of at least 30 billion yen (approximately USD 200 million).
– This is ORIX’s first Japan-focused PE fund with capital from an international third-party investor.
– It is also QIA’s first investment in a domestic Japanese private equity fund.
– Investment decisions will be made by OQCI GP Ltd., the general partner of the fund.
– ORIX and QIA will be the only limited partners in the fund, contributing 60% and 40% of the capital, respectively.
– ORIX will support the GP through deal sourcing, post-investment monitoring, and advisory services for portfolio companies.
– ORIX CEO Makoto Inoue stated that the partnership will strengthen Japan’s industrial development, enhance capital efficiency, expand the asset management business, and support ORIX’s long-term growth strategy.
– QIA CEO Mohammed Saif Al Sowaidi, CFA said Japan is a core component of QIA’s private equity strategy and highlighted the value creation opportunities in governance-driven deals.
– QIA is the sovereign wealth fund of Qatar and one of the largest and most active globally, partnering with leading institutions such as ORIX.
– The partnership aligns with Japan’s recent M&A surge driven by METI guidelines and Tokyo Stock Exchange reforms encouraging privatizations, reorganizations, and carve-outs.
– ORIX has completed more than 30 domestic PE investments and plans to use this fund to expand its M&A activities while continuing to invest its own capital.
– ORIX aims to reach 100 trillion yen in assets under management and achieve a return on equity of 11% or higher by fiscal year ending March 2028.
– ORIX and QIA will jointly seek to enhance the corporate value of high-growth Japanese companies and explore further collaboration opportunities.
