Bain Capital in talks on new Japan buyout fund -source (updated)

Kosaido Holdings

18/07/2019 14:02

(Adds Bain representative declining to comment)
    By Junko Fujita
    TOKYO, July 18 (Reuters) - Global private-equity firm Bain
Capital LLC is in early talks with investors to set up a new
fund targeting mid-sized Japanese companies, a person with
knowledge of the matter said.
    The fund would come as Japanese companies face pressure to
maximise corporate returns following a push for better
governance led by Prime Minister Shinzo Abe.
    The person spoke on condition of anonymity because the
discussions are still private. Bain's plan was earlier reported
by Bloomberg.  urn:newsml:reuters.com:*:nL4N24J013
    A Bain Capital representative declined to comment.
    Bain Capital this year attempted a management buy-out of
printing firm Kosaido Co  7868.T , worth about 17 billion yen
($158 million). Its shares were trading below book value,
despite a stake in a lucrative crematorium business.
    The bid, although later blocked by a fund backed by Japanese
activist investor Yoshiaki Murakami, appeared to signal Bain's
renewed focus on smaller firms in Japan.
    Bain's Japanese track record already includes investments in
smaller firms, such as spa operator Ooedo Onsen Monogatari
Hotels & Resorts Co, mushroom producer Yukiguni Maitake Co and
the Japanese franchisee of Domino's Pizza. 
    It also led an $18 billion investment in Toshiba Memory, the
world's second-largest maker of NAND memory chips, which was
spun off from Toshiba Corp  6502.T  last year.  urn:newsml:reuters.com:*:nL3N2170OH
    Bain Capital in December raised its largest Asia-focused
fund, worth $4.65 billion.    
    Since the introduction of a corporate governance code in
2015, Japanese companies have become more open to calls from
investors to change their strategies and boost shareholder
return. 
    That could lead to more management buyouts, where managers
take companies private to focus on improving performance, and
opportunities for buyout firms to fund such deals.

($1 = 107.7200 yen)

 (Reporting by Junko Fujita; Editing by David Dolan/ Christopher
Cushing and Emelia Sithole-Matarise)
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