ORIX Corp. has partnered with Qatar Investment Authority to establish a ¥385 billion ($2.5 billion) private equity fund targeting Japanese companies, marking the diversified financial services group’s first domestic buyout vehicle accepting international capital.
The OQCI Fund will pursue business successions, take-private transactions and corporate carve-outs with minimum deal sizes of ¥30 billion ($195 million), according to a statement Tuesday. ORIX will contribute 60% of the capital while QIA provides the remaining 40%, with investment decisions made by a joint general partner entity.
Japan’s private equity market has attracted growing foreign interest as regulatory reforms and corporate governance pressures drive restructuring activity. Foreign capital acceptance by Japanese companies has tripled in deal count and increased fivefold in value over the past decade, according to government data. The Tokyo Stock Exchange’s demands for improved capital efficiency have accelerated delisting and divestiture activity.
ORIX has completed more than 30 private equity investments using its own balance sheet. The fund structure allows the Tokyo-based company to pursue larger transactions while improving capital efficiency, part of a broader strategy targeting ¥100 trillion in assets under management by March 2028.
Whether ORIX and QIA can consistently identify undervalued opportunities in an increasingly crowded market remains uncertain as global funds including KKR and Bain Capital compete for similar assets.
