J-STAR, a Tokyo-based buyout firm, has raised 17.9 billion yen ($121 million) for what is understood to be Japan’s first-ever continuation fund transaction.
The capital commitment to J-STAR Continuation Series Funds, which is a multi-asset continuation vehicle, was led by funds advised by Neuberger Berman alongside other limited partners from other funds managed, served or advised by J-STAR, according to a company statement.
The fund’s shareholders and J-STAR No.5 Series Funds, a 75-billion yen vehicle, have invested in a newly formed holding company Renatus, which acquired four local waste treatment and recycling assets from J-STAR’s third, fourth, and fifth flagship funds.
Harita Metal, Sanwa Group, Sincere Holdings and SNK Holdings are among the assets which were moved to the continuation fund, according to a separate statement.
“By building an organic network among the participating companies and mutually sharing their diverse technological bases and know-how, the group aims to provide appropriate and advanced one-stop waste treatment services to their clients,” it added.
The representative directors of each group company will serve as the board of directors of Renatus and actively promote mutual cooperation.
J-STAR’s latest continuation fund will retain a portion of undrawn capital to fund future unidentified bolt-on investments by Renatus. The firm said in the same statement that Japan Waste, a local waste management company, will become its wholly-owned subsidiary as a result of a share-swap agreement with ARE Holdings.
J-STAR in April invested in Miraie, an IT system development provider based in Tokyo. The firm had raised its 48.5 billion yen ($371 million) fourth fund in 2019. The third vehicle was closed with a $200 million corpus in 2016.