Tokyo-based Minerva Growth Partners has announced the first close of its second growth equity fund, marking another step in its effort to deepen late-stage capital availability in Japan’s technology sector. The firm confirmed that Minerva Growth Partners II has secured approximately $44 million in commitments at first close and is targeting a final fund size of around $125 million. The new vehicle is designed to back Japanese technology-driven companies as they scale in the critical period before and after going public.
Positioning Growth Equity in Japan
Minerva Growth Partners was founded with the objective of institutionalizing growth equity as a core asset class in Japan, where many startups still face structural constraints at the time of listing. These challenges often include limited market capitalization, lower liquidity, and insufficient access to large pools of growth capital. As a result, promising companies frequently pursue public listings earlier than optimal, sometimes at the expense of long-term growth.
Shifting IPO Dynamics
In more mature markets such as the United States, companies increasingly raise substantial growth capital before an initial public offering to strengthen operations and competitive positioning. Minerva believes this model is becoming increasingly relevant in Japan as IPO timelines lengthen and capital strategies grow more complex. At the same time, the Tokyo Stock Exchange has been tightening listing standards, increasing pressure on companies to demonstrate scale and resilience before going public.
Fund II First Close and Backers
According to people familiar with the transaction, Minerva raised roughly $44 million in the first close of Fund II, with participation from both domestic and global institutional investors. Among the backers is Japan Investment Corp, the state-supported investment vehicle that has been active in strengthening Japan’s innovation ecosystem. Minerva expects additional commitments over the coming months as it moves toward its targeted $125 million final close.
Strategy and Investment Focus
Fund II will primarily pursue minority growth investments in private companies, with flexibility to invest across the private-to-public continuum. The strategy also includes selective growth buyouts, management buyouts, carve-outs, and private investments in public equities when market conditions allow. Sector focus will remain on internet, software, and broader technology-enabled services, reflecting areas where Minerva sees sustained structural growth.
Track Record from Fund I
Minerva’s first fund, launched in September 2020, closed with total commitments of approximately $120 million and invested in eight Japanese technology-driven companies. One of those portfolio companies, Infcurion, completed an initial public offering on the Tokyo Stock Exchange Growth Market in October 2025. Minerva supported the company not only with capital but also with executive hiring, IPO preparation, capital strategy, and post-listing investor communications.
Market Conditions Supporting Growth Capital
The firm believes current market dynamics are expanding the opportunity set for growth equity investors in Japan. Stricter listing standards, larger pre-IPO financing rounds, and longer IPO timelines are increasing demand for late-stage private capital. In parallel, rising secondary transactions from maturing venture funds and more carve-out opportunities are creating additional entry points for growth-focused investors.
Cross-Border and Crossover Approach
A distinguishing feature of Minerva’s platform is its private-public crossover strategy, which allows it to invest across different stages of a company’s lifecycle. The firm aims to partner with management teams over the long term, supporting companies from late-stage private growth through post-IPO execution. This approach is complemented by collaboration with Pleiad Investment Advisors, which brings experience in public market investing across Asia-Pacific.
With the first close of Fund II, Minerva Growth Partners is positioning itself to play a larger role in addressing Japan’s shortage of late-stage growth capital. The targeted $125 million fund reflects growing institutional interest in supporting companies before they reach public markets. As IPO requirements tighten and capital needs increase, Minerva’s growth equity and crossover strategy is expected to become increasingly relevant within Japan’s evolving startup ecosystem.