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JEDDAH: Qatar and Japan have partnered to create a $2.5 billion private equity fund, marking the Gulf state’s first domestic investment into the Asian country.

Qatar Investment Authority and Japan’s ORIX Corp. announced the establishment of a commitment-based private equity fund, OQCI Fund LP, according to the Qatar News Agency.  

QIA is expected to commit $1 billion to the fund, representing 40 percent of total capital, while ORIX will contribute the remaining 60 percent. 

The fund will invest in Japanese companies, primarily targeting corporate transfers, privatizations of listed firms, and spin-offs through the separation or divestment of subsidiaries or business divisions. Individual investments could reach 30 billion yen ($200 million). 

This comes as around 30 Japanese companies are active in Qatar as of 2024, mainly in the oil, gas, and infrastructure sectors. Strategic partnerships, including liquefied natural gas production and supply agreements between QatarEnergy and Japanese firms such as JERA and Mitsui, underscore the depth of this long-standing relationship, reinforced by major engineering and construction projects. 

QIA holds about 100 billion yen in Japanese investments, including a 5 percent stake in Kokusai Electric and residential real estate across key Japanese cities. 

Mohammed bin Saif Al-Sowaidi, CEO of the QIA, described Japan as a long-term strategic destination for the sovereign wealth fund’s investments in unlisted companies. 

He added: “Given disciplined valuations, a robust pipeline of transparent transactions, and growing global investor interest, this partnership presents a unique opportunity to collaborate with leading Japanese companies to create long-term value.”  

Al-Sowaidi said the partnership marks a major milestone for QIA as ORIX’s first international partner in its inaugural Japan-focused private equity fund in the company’s 60-year history. 

“We are confident this collaboration will allow both parties to capitalize on investment opportunities in Japan and support ORIX’s ambitions in building a successful asset management initiative,” he added, according to QNA. 

Makoto Inoue, executive representative and president and CEO of ORIX Corp., emphasized the significance of partnering with QIA, saying: “QIA is a highly influential sovereign wealth fund on the global stage, and we are delighted to support its efforts to expand investments in the Japanese economy.” 

He added that ORIX has long developed deep expertise in Japan’s private equity sector. Inoue noted that the partnership represents a natural next step in enhancing the financial value of high-growth companies and will contribute to Japan’s broader industrial development. 

Through this partnership, ORIX and QIA aim to enhance the corporate value of high-potential Japanese firms, contribute to industrial development, and explore additional areas of collaboration. 

This fund marks the first domestic Japanese private equity fund to receive capital from an international investor and the first Japan-exclusive private equity investment for QIA.  

The fund’s general partner, OQCI GP Ltd, will manage investment decisions, while both QIA and ORIX will act as limited partners. ORIX will also source potential investment opportunities, handle post-investment activities, and provide advisory support to portfolio companies.