Development Bank of Japan Inc. and DBJ Asset Management Co., Ltd. (DBJAM) launched a co-investment program with the Toho Bank, Ltd., Gunma Bank, Ltd., and Joyo Bank, Ltd., to invest in foreign private equity funds. The four banks will invest approximately ten billion yen under the program. DBJ Asset Management will be responsible for finding and providing investment opportunities.
PE funds invest in private companies, seeking returns through IPOs or sales to other firms after improving the enterprise value of the target companies by helping them grow or restructure. To Japanese regional financial institutions, PE funds are a means of diversifying their asset portfolios and obtaining effective solutions for their clients. These include alliances with companies invested in by the PE funds and support for their clients’ overseas expansion.