Rapid Growth of Japan Private Equity Funds

From Reuters:

Private equity firm Carlyle Group has raised nearly $2 billion for buyouts in Japan and is set to close the fund shortly, underscoring investors' growing appetite for the asset class, industry sources said on Tuesday. This would be the biggest buyout fund ever destined for investment in the country, topping a $1.2 billion fund raised by Carlyle's [CYL.UL] U.S. peer Ripplewood in 1999.

The number of such funds and the amount of capital in them have grown solidly in recent years. The buyout firms purchase apparently undervalued companies, restructure their businesses, and then sell them three to five years years later at a premium. The additional monies for Japan reflect a broader interest in investments for all of Asia.