November 2, 2022, Tokyo, – Aizawa Asset Management Co., Ltd. (“AAM”), the alternative investment management company in Japan, completed the second closing of its third secondary strategy fund, Ariake Secondary Fund III LP (“ASF-III”), on October 11, 2022, and has onboarded investors including Eugene Investment & Securities Co. Ltd from South Korea and Saikyo Bank Limited and Kyokuto Securities Co., Ltd., through its Japan feeder fund] for this closing phase.
The Cayman Islands domiciled ASF-III, in accordance with its secondary strategy, is to acquire low liquidity assets such as fund LP interests of private equity funds, such as buy-out funds and venture capital funds, domiciled in and outside Japan, held by Japanese local investors, as well as unlisted company shares held by private equity funds. The partnership fund is to co-invest along with top-tier Japanese private equity funds. Since the launch in April 2022 to the end of September 2022, ASF-III participated in two co-investments. One, a direct acquisition of an unlisted equity, and the other, a LP interests secondary transaction.
AAM, through investment activities of secondary strategy funds including ASF-III, is to provide the following two main functions in the Japanese market: First, to offer an option of “exit before maturity” of low-liquidity assets held by Japanese investors. Fund LP interests in private equity funds are often difficult to liquidate before maturity, but our role includes acquiring such fund LP interests during the managing period, thus allowing for early liquidation of their portfolio. Second, to offer an option of “exit at maturity” of private equity funds to assist the liquidation of their investments in the portfolio. Through its participation, AAM provides value on both ends by maximizing the collection of a portfolio’s investments through continuous holding, and providing stable shareholder structure for continuation and further growth for the investees consisting of Japanese local companies.
AAM has been providing solutions for liquidations of low-liquidity assets for investors, involving approximately 40 acquisitions of fund LP interest portfolios and 20 acquisitions of unlisted Japanese company shares through its vintage funds in the form of Ariake Secondary Fund I LP (“ASF-I”) and Ariake Secondary Fund II LP (“ASF-II”). The acquisitions and collections generated ASF-I and ASF-II with stable and relatively high returns for participating global institutional investors.
AAM seeks high returns in the limelight of Japanese secondary investment market upon completion of the second closing of ASF-III, to offer solutions for increasing needs of global portfolio liquidation.
About Aizawa Asset Management
“Striving to become the leading Japanese alternative asset management company” as its slogan, Aizawa Asset Management was established on Feb 1, 2021 as a result of a merger between a pioneer in Japanese hedge funds and a niche player in secondary strategies of Japanese private assets. The company offers various alternative investment strategies, namely Japanese equity long/short strategy, value-up strategy, insurance-linked strategy, Asian trade finance strategy and private equity secondary strategy to local and global investors.
Address: 7th Floor, Tokyo-Shiodome Building, 1-9-1 Higashi-Shimbashi, Minato-ku, Tokyo 105-7307 Japan
CEO: Shinichiro Shiraki