Qatar Investment Authority and Japan’s ORIX have launched a $2.5 billion private equity fund targeting mid-to-large Japanese companies.
Japanese financial services group ORIX Corporation and the Qatar Investment Authority (QIA) have signed an agreement to establish a $2.5 billion commitment-based private equity fund, OQCI Fund LP, targeting companies in Japan.
The fund will invest in Japanese operating companies with enterprise values of at least ¥30 billion (around $200 million).
It will focus on business succession cases, take-private deals involving listed companies, and carve-outs of subsidiaries or divisions from large corporations.
ORIX will provide 60 percent of the capital, with QIA contributing the remaining 40 percent. Investment decisions will be made by a newly created general partner entity, OQCI GP Ltd., while ORIX and QIA will act as the sole limited partners.
The deal marks two firsts: it is ORIX’s first domestic private equity fund involving an international third-party investor, and QIA’s first fund dedicated exclusively to the Japanese market.
“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,” said QIA CEO Mohammed Saif Al-Sowaidi.
He added, “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 capitalise on market opportunities and support ORIX’s ambition to build a thriving asset management initiative.”
Global investors such as Blackstone and KKR have increased their investments in Japan amid a wave of corporate governance reforms, succession challenges among ageing business owners, and conglomerates selling non-core assets.
In its statement, ORIX said that incorporating third-party funds supports its broader goal of expanding its asset management business and improving capital efficiency. The company is aiming for ¥100 trillion in assets under management and a return on equity of 11 percent or higher by the fiscal year ending March 2028.
