Unemployment Rate Up To 5.1%

The Japanese Cabinet announced that the unemployment rate in October went up 0.1% to 5.1%. The market consensus was 5.0%. Industrial production in October fell 1.8% from a month earlier, according to the Ministry of Economy, Trade and Industry. But the fall was smaller than the economists' estimates, which were around 3.3%.

Keystone To Eye Y15B For Turnaround Fund

Keystone Partners Co., Ltd., a Tokyo-based private equity firm, is raising upward of about 15 billion yen for its inaugural turnaround fund with a deadline of next June. Keystone has been successful in fund-raising 5 billion yen in dry powder so far from pension funds etc.

Deutsche Bank To Invest In Turnaround Fund

Deutsche Bank AG, Tokyo Branch announced its commitment to invest in a business revitalization fund to be initiated by Japan Industrial Solutions Co., Ltd (JIS). Established by DBJ, SMBC, BTMU and Mitsubishi Corp., JIS was founded on September 29 to manage funds aimed at revitalizing businesses; Deutsche Bank's Tokyo Branch will be a limited partner and capital participant in the planned fund through its Strategic Investment Group.

Japan's Q3 GDP UP 3.9%

The government announced that real gross domestic product increased 3.9% in annualized terms in the July-September period, up from a revised 1.8% growth in April-June. The average consensus was around 2.5%. Strong GDP growth was driven by consumer spending. Households stepped up purchases of fuel-efficient vehicles before government subsidies ended in September. Smokers also stocked up on tobacco before taxes were increased on Oct 1. Economists say the economy could have slowed in the third quarter if the one-off factors bolstering household spending were stripped out. They add that the current fourth quarter is likely to be impacted by a stronger yen, which will lead to a slowdown in exports.

AP To Acquire Guam Tele-com Servicer

Advantage Partners LLP, a Tokyo-based private equity firm, announced that an investment vehicle served by AP will acquire GTA TeleGuam, the leading provider of communications service in Guam from Shamrock Capital Advisors. Shamrock Capital Advisors, a California-based private equity firm, has been a co-owner with GE since the privatization of GTA in 2005.

Sumitomo Tr. To Beef Up Asset Mgt. Business

Sumitomo Trust & Banking Co., an independent trust bank and its subsidiary Nikko Asset Management Co., are in the final stages of acquiring two foreign asset management companies, according to Nikkei. They are Tyndall Investment Management Ltd., a subsidiary of a major Australian financial group and DBS Asset Management Ltd., a subsidiary of Singapore's largest bank, DBS Bank. Sumitomo Group will likely spend up to 10 billion yen to purchase the two subsidiaries.

Mizuho To Acquire Stake In BlackRock

Mizuho Financial Group Inc., one of mega banks, will spend $500 million to take a roughly 2% interest in US asset management giant BlackRock Inc., according to Nikkei. Mizuho will market BlackRock's financial products to Japanese individuals and businesses.

JAIC and CyberAgent To Launch 2nd China-focused Fund

JAIC, a listed Asia-focused VC firm, and CyberAgent, Inc. an internet service company, announced that Japan Asia Investment (China) Co., Ltd, an affiliate of JAIC and Cyber Agent Ventures, Inc. an investment affiliate of CyberAgent, jointly set up a China-focused fund "CA-JAIC China Internet Fund Ⅱ". The fund will start with $15 million to invest in promising Chinese venture capital companies.

Combi To Go Private Via MBO

Combi Corporation, a leading baby-goods manufacturer, announced that Combi approved the tender offer by an investment firm set up by the founding family. The investment firm is launching a tender offer at 1000 yen per share with the total purchase price estimated at 12.2 billion yen. Nomura Capital Investment Co. plans to offer more than 10 billion yen in financing.

Avon To Sell Japan Unit To TPG

Avon Products, Inc. announced that it has agreed to tender its 74.67% share in its Avon Japan business to an affiliate of TPG Capital, a global private equity firm. Under the terms of agreement, TPG will make a cash payment of 7.3 billion yen ($90 million) for Avon's stake and for pre-paid royalties. As part of the transaction, TPG is launching a tender offer in Japan for all outstanding shares of Avon Japan at 74 yen per share. Avon Japan is the only subsidiary in Avon's geographic portfolio that is publicly traded. Avon will focus its business and investment on higher growth opportunity locations like China.

INCJ To Invest In Power Semicon Maker

Innovation Network Corporation of Japan, private-public investment fund, announced that INCJ will underwrite new shares issued by Nihon Inter Electronics Corporation, a listed staggering manufacturer of discrete semiconductors and power module products, for 3.5 billion yen. INCJ will also provide management support through introducing new talents from outside. With this investment as a starting point, INCJ plans to aim for a reorganization of the power-modules market.

Secured Capital To Go To Private

Secured Capital Japan Co., a listed real-estate oriented fund management company, announced that Secured Capital approved the tender offer by Pacific Alliance Group, a HK-based investment firm, and the management of Secured Capital. Pacific Alliance is the largest shareholder in Secured Capital, holding more than 40% including CBs. Secured Capital is to expand its business to Asia and develop new products like private equity funds with Pacific Alliance.

MUFG To Buy RBS's Project Financing Ops.

Mitsubishi UFJ Financial Group Inc., a leading Japanese mega bank group, plans to purchase the financing business project of the Royal Bank of Scotland for an estimated 4 billion pounds, or roughly 500 billion yen, according to Nikkei. The negotiation between MUFG and the British government, which controls 84% of RBS's voting rights is in the final stage of ironing out the details. They hope to sign a deal by year-end and complete the transaction in the first half of 2011.

PE-backed Software Maker To File For IPO

Private equity-owned software maker group 1st Holding, Inc. has filed for an initial public offering on the Jasdaq Securities Exchange. A core unit of 1st Holding Inc., WingArc Techonolgies, Inc. was acquired by Advantage Partners, a Tokyo-based major private equity firm in 2004.

NEC Capital To Launch Takeover Bid For Risa Partners

NEC Capital Solutions Ltd., a leasing affiliate of NEC Corp, announced that NEC Capital will make a tender offer for Risa Partners Inc., a battered real-estate fund management company. NEC Capital has established a business and capital alliance with Risa in 2009 and by this transaction, will try to make Risa a wholly-owned subsidiary.