Our Firm

Orchestra Private Equity (“Orchestra” or “OPE”) was established in 2014 and has offices in Tokyo and Seoul; and has fund management office in Singapore. OPE targets buyout investments in Japanese and Korean smaller end of the middle market (“SEMM”) companies.

OPE was founded by 2 Partners, Jay Kim and Hiro Wakashita, who started working together in 2007 as starting members of an Asia regional buyout fund of a prominent global GP.

The 2 Partners each have 15 years of the SEMM buyout experience and have collectively sourced more than 1,000 buyout deals in Japan and Korea.

To date, OPE has been operating on a single asset fund bases with total investment size at USD 268M AUM. The team has made 6 platform acquisitions and 10 add-on acquisitions; and 1 platform exit and 2 subsidiary exits.

All Orchestra members are Japan, Korea, and Singapore-native, multicultural-talent with English fluency. Members work under a firm-wide matrix structure and are fluidly assigned to cross-border projects.

Deep Smaller End of the Middle Market Experience in East Asia

Orchestra’s investment activities are based on global perspective. However, Orchestra avoids ‘Cookie Cutter Approach’ to deals. Investment criteria are localized to Japanese and Korean accord, based on each country’s macro trends, industry’s long-term viability, segment’s regulatory environment, and company’s acquisition financing accessibility.

Orchestra puts a strong emphasis on building grade-A multicultural management teams. To manage Asian executive talent, the team puts efforts into ensuring professionalism, setting operating rhythm, providing guidance on ethics & ESG standards, and establishing financial and operating objectives based on investment strategy aligned with incentives.

Orchestra works with management teams to create value and execute buy-and-build strategy Hands-on operational approach includes launching new products, rejuvenating sales & marketing to expand customers, entering new geographies, establishing supply chain strategy, installing new MIS, rationalizing cost, and executing add-on acquisitions.

Investment Strategy – ‘Orchestra SEMM Model’

  • Transact on Buyout Opportunities Only
    • Acquire controlling stakes of niche leaders at the smaller end of the middle market (investment size at sub-USD 100M).
    • Family-owned businesses with succession issues; owners looking for a partner to assist with the next stage of growth; public-to-private deals; and corporate carve-outs.
  • Platform Investments in Japan and Korea Only
    • Japan and Korea are the most developed Asian countries with sophisticated legal and financing infrastructure suited for leveraged buyout deals.
    • Japan and Korea have a plethora of mid/small cap companies that have good foundations with the upside of global expansion.
  • Add-on Acquisition
    • Add-on acquisitions of overseas players to enter new geographies; domestic competitors to expand market share.
    • Vertical add-on acquisitions to gain efficiency.
    • Add-on acquisition of companies in adjacent industries to enter new markets.
  • Operation Heavy Model to Support Expansion (J Curve Growth)
    • Heavily involved in operations (including interim management roles) to quickly strengthen system and organization.
    • Intense post-acquisition activities (growth CAPEX, MIS installation, enhancing sales & marketing, etc.).
    • Build grade-A management teams that can lead next stage of growth.
  • Thesis in Lifestyle Businesses (Consumer Goods, Retails, Services, Franchisors, etc.)
    • Invest in East Asian companies that are aligned with general consumption trends.
    • Demographics of an aging population and larger disposable income provide strong opportunities in the lifestyle space.
  • Target Light-CAPEX Companies
    • Acquire nimble companies that are receptive to change and can adapt quickly.
    • Acquire scalable businesses with the ability to expand domestically and globally without high capital requirements.

Buy-and-Build into ‘Global Champions’

  • OPE Presence
  • Expanded Presence, through Portfolio Company Offices (also presence in LA USA, Barcelona Spain)
Orchestra builds Japan and Korea smaller end of the middle market companies into ‘global champions’ through buy-and-build strategy that includes long-term investment and add-on acquisition
  • East Asia have plethora of healthy smaller end of the middle market businesses that have strong products, brands, and intellectual properties that have global expansion upside.
  • Orchestra, work with portfolio company management teams to accelerate geographic expansion from Day 1.
  • Orchestra pursues aggressive add-on acquisition of overseas player to enter new geography. Also pursues add-on acquisition of domestic competitors to expand market share, vertical add-on acquisition to gain efficiency, and add-on acquisition of companies in adjacent industries to enter new markets.
  • Orchestra actively invests in corporate infrastructure to achieve strong growth over the hold-period. Areas of investment can include building grade-A management team that can lead next stage of growth, installing MIS, reengineering supply chain, and enhancing sales & marketing.

Investment Criteria

  • Business Definition

    Buyout of Korean and Japanese companies at the smaller end of the middle market

    Company Size

    Revenue of USD 40M to 500M and EBITDA of USD 4M to 25M

    Investment Size

    Sub USD 100M

    Regions
    • Platform investments: Japan and Korea
    • Add-on acquisitions: Global, with emphasis in Japan, Korea, and Singapore
  • Industries

    In a wide variety of industries that can grow to ‘Global Champions’, including:

    • Business services
    • Consumer brands
    • Education and training
    • Franchisors
    • Healthcare
    • Software and IT
    • Specialty manufacturing and distribution
    Transaction Type
    • Family-owned businesses with succession issues
    • Owners looking for a partner to assist in the next stage of growth
    • Public-to-privates
    • Corporate carve-outs
    • Recapitalization buyouts