Pacific Fund Management, Ltd. Realizes 4.0x Return on Co-Investment in Japanese Buyout

Oct. 22, 2010 - PRLog -- SAN FRANCISCO, CA (Press Release) Friday, October 22, 2010 — Pacific Fund Management, Ltd. Realizes 4.0x Return on Co-Investment in Japanese Buyout

San Francisco, CA, October 22, 2010 — Pacific Fund Management, Ltd. (PFM), a leading manager of specialized funds providing efficient access to differentiated private equity investments in Asia, announced today that its Pacific Chiyoda Fund (PCF) has completed a successful exit from a co-investment alongside the leading Japanese middle market turnaround specialist firm, Next Capital Partners (NCP).  NCP acted as the lead sponsor in the investment, a control buyout of golf equipment and accessory manufacturer KASCO K.K. ("KASCO"), headquartered in Shikoku, Japan.  NCP and PCF have agreed to sell their shares in KASCO to Mamiya-OP Co, Ltd, a publicly traded manufacturer of electronic and sporting goods equipment headquartered in Tokyo, Japan.  PCF will realize a gross return of 4.0x on the investment. 

“We were honored by the opportunity to co-invest in this company with our friends at Next Capital,” said Grant Finlayson, founder and CEO of PFM and general partner of PCF. “Next Capital is a great partner for us. They are a unique firm, with outstanding turnaround skills and well-positioned to access differentiated deal flow through a network of relationships extending beyond Tokyo to underserved regional centers around Japan.  The KASCO deal is an example of NCP's ability to source, execute, manage and exit from exciting turnaround opportunities in the Japanese market.  We were pleased to be able to support the transaction on behalf of international investors, and help deliver an outstanding return to the limited partners in our Pacific Chiyoda Fund."

“We stand firmly behind both PCF and NCP, and have been pleased with the successful result of the KASCO investment," said Brian Williamson, Managing Director of Oppenheimer & Co. and a leading investor in PCF.  “As the KASCO transaction demonstrates, Next Capital’s investment discipline and strong focus on value creation have proven effective even at times when high exits are scarce.  This means manager selection is a key differentiator for generating alpha in the Japanese marketplace.  NCP did a great job leading the KASCO deal in Japan, and we appreciate the value that Grant and the PCF team have provided in structuring and managing the complex cross-border aspects of the deal."

"We are very pleased with the KASCO investment," said Hisao Tateishi, co-founder and CEO of NCP.  "We have appreciated the support of our friends at the Pacific Chiyoda Fund in this transaction, and look forward to more success together on other investments in the future."

About Pacific Fund Management

Pacific Fund Management, Ltd. is a private equity firm that specializes in organizing and managing co-investments in unique private equity opportunities in Asia, utilizing differentiated strategies to access underserved niche markets.  PFM works on a cooperative basis with leading private equity firms across the region, bringing to bear the long experience of PFM's principals in the structuring and execution of complex cross-border transactions, and PFM's network of relationships with institutional investors around the world.  PFM presently manages approximately $100 million of private equity assets through a family of specialized funds.  To date, the PFM funds have made investments in 15 companies.  KASCO represents the second full exit from PFM's portfolio, which have collectively produced gross returns of 3.0x capital and an IRR of 61% for PFM's investors.

For information please contact: Grant Finlayson (CEO) at gfinlayson@pacificfundmanagement.com or Jeff Collett (CFO) at jcollett@pacificfundmanagement.com, telephone +1-925-937-1709.

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Pacific Private Equity Group (PPEG) is a family of private equity investment and advisory firms specializing in investment between Asia and Western markets. PPEG consists of three primary companies: (1) Pacific Fund Management (manager of specialized co-investment funds creating efficient access to differentiated opportunities in underserved niche markets across Asia), (2) Pacific Technology Partners (the first pure play technology buyout firm focused on Asia, co-founded with Adriaan Ligtenberg), and (3) Pacific Ventures (an advisory firm providing consulting services to leading private equity firms on projects spanning Asia and North America). Each of these businesses leverages the long experience of PPEG's principals in Asia managing complex cross-border investments, M&A, and related financial transactions, and a unique network among leading institutional investors across Asia as well as U.S. institutions with proven appetite for private equity investment in the region.