Qatar and Japan Establish $2.5bn Private Equity Fund to Strengthen Economic Ties
Qatar Investment Authority and ORIX Corp. partner to create commitment-based fund focused on Japanese companies.
Qatar and Japan have formed a partnership to establish a $2.5 billion private equity fund, marking the first domestic investment by Qatar into the Asian nation's market.
The Qatar Investment Authority (QIA) and Japan’s ORIX Corp. announced the creation of OQCI Fund LP, a commitment-based private equity fund, according to the Qatar News Agency.The QIA is expected to commit $1 billion, representing 40 percent of total capital, while ORIX will contribute the remaining 60 percent.
The fund aims to invest in Japanese companies, primarily targeting corporate restructuring, privatizations of listed firms, and spin-offs through the separation or divestment of subsidiaries or business divisions.
Individual investments could reach up to 30 billion yen ($200 million).This partnership comes at a time when around 30 Japanese companies are active in Qatar, mostly operating within the oil, gas, and infrastructure sectors.
Long-standing strategic relationships have been reinforced by major engineering and construction projects, as well as liquefied natural gas production and supply agreements between QatarEnergy and Japanese firms such as JERA and Mitsui.QIA holds approximately 100 billion yen in Japanese investments, including a 5 percent stake in Kokusai Electric and residential real estate across key Japanese cities.
The CEO of the QIA, Mohammed bin Saif Al-Sowaidi, described Japan as a long-term strategic destination for the sovereign wealth fund’s investments in unlisted companies.He added: “Given disciplined valuations, a robust pipeline of transparent transactions, and growing global investor interest, this partnership presents a unique opportunity to collaborate with leading Japanese companies to create long-term value”.
This marks a significant milestone for QIA as ORIX's first international partner in its inaugural Japan-focused private equity fund in the company’s 60-year history.Makoto Inoue, executive representative and president and CEO of ORIX Corp., emphasized the importance of partnering with QIA, stating that it is a highly influential sovereign wealth fund on the global stage.
He expressed delight at supporting the efforts of QIA to expand investments in Japan's economy.
ORIX has long developed expertise in Japan’s private equity sector, and Inoue noted that this partnership represents a natural next step in enhancing the financial value of high-growth companies while contributing to Japan's broader industrial development.Through this collaboration, both ORIX and QIA aim to enhance the corporate value of high-potential Japanese firms, contribute to industrial development, and explore additional areas of collaboration.
This fund is significant as it marks the first domestic Japanese private equity fund to receive capital from an international investor and the first Japan-exclusive private equity investment for QIA.The general partner of the fund, OQCI GP Ltd, will manage investment decisions, while both QIA and ORIX will act as limited partners.
ORIX will be responsible for sourcing potential investment opportunities, handling post-investment activities, and providing advisory support to portfolio companies.