Taiyo Pacific Partners, which has been focused on investments in Japanese companies, is now planning an India fund.
The plans by Taiyo, which has backing for its funds from buyout specialist WL Ross & Co and where US' largest pension fund CalPERS has an exposure, comes at a time when apprehensions of a real estate bubble are making private equity investors wary of China. The size of the proposed India fund could not be ascertained.
Industry sources said due diligence is currently on for the new India Fund, which is expected some time this year depending on the progress on fund raising.
Sources involved in the exercise said that considerable interest was perceived in the India mandate from investors and the new Fund would capitalise on this positive sentiment.
Taiyo is likely to depute Mr Sarath Sathkumara, who had joined the firm from Japanese private equity major SBI Group's Singapore arm, to launch the India fund.
“Due to US securities law concerns, we are unable to discuss any plans we may have for an India fund. We find India to be a fascinating market and we are very pleased that Mr Sarath Sathkumara has joined our team to deepen our Asia expertise,” Mr Brian K. Heywood, Chief Executive of Taiyo Pacific Partners, said in response to a query on the India plans.
Taiyo, located in Kirkland, Washington, was founded in 2003 by Asia-focused professionals dedicated to companies in Japan.
The initial Taiyo Fund launched in Japan in June 2003 and has grown to nearly $2 billion in assets across three Japan-focused funds. Taiyo's first fund is co-managed with WL Ross & Co and was organised with an initial equity investment of $200 million by CalPERS, the California Public Employees' Retirement System.
The Taiyo Pearl Fund is the second of three funds managed by the firm and was launched in October 2007 to invest in publicly listed, Japanese micro-cap and private companies.
Mr Wilbur L. Ross also serves as an investment committee member of the Taiyo Pearl Fund.