Carlyle Group Freezes Investment In Smaller Japanese Firms

The Carlyle Group has suspended investments in midsize and small Japanese companies, with the US private-equity firm shifting emphasis to comparable businesses in India and China, according to Nikkei.

The firm's Asia Growth Capital group targets midtier businesses with high growth potential, investing in such firms as the Oita-based Nakaya Microdevices Corp. in 2007. But with more promising candidates in China and India, the group halted new investments in Japan at the end of June. Haruyasu Asakura, who had been a key member, left for a senior position at a public-private fund. In Japan, the Carlyle Group will focus on buyout deals and real estate investments.