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NIF Ventures and Pama to launch Japanese buy-out fund

Japanese private equity firm NIF Ventures has joined forces with Hong Kong’s Pama to launch a Y30bn corporate buy-out fund early next year. The fund aims to take equity stakes in troubled small businesses with less than Y20bn in market capitalisation or major companies non-core assets.

‘Through the alliance with Pama we hope to gain know-how on corporate rehabilitation and draw money from global pension funds,’ a spokesperson for NIF Ventures told Reuters.

NIF Ventures and Pama will also ally with building maintenance company Tokyo Biso Kogyo Corp and a management consultancy in the Toyota Motor Group to tap their expertise on cost-cutting and other measures to enhance corporate value.

Private equity firms are currently benefiting from a recent stock market rally in Japan, which has boosted unrealised gains in investment portfolios, making it easier for firms to make a profitable exit.

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