Invictus Private Equity Asia, a South Korea- and Japan-based buyout firm, has agreed to acquire Tojo No Mori Country Club, marking its first investment in Japan, CEO and managing partner Jack Oh told this news service.
The Kobe-based club, with 63 holes across three courses, is Japan’s second-largest private golf resort. The acquisition values the business at about JPY 5bn (USD 37m) in enterprise value, with an equity check of JPY 1.4bn (USD 10m), according to Oh.
“The resort operates at about 60% capacity, and we see clear potential for upside in the remaining 40%,” he said.
The deal has been finalised, with payment settled in May. The buyout tees up the firm’s broader strategy targeting healthcare, manufacturing, and hospitality industries in Japan, focusing on proprietary deal sourcing within small to medium-sized enterprises, he added.
The CEO further highlighted the developing tourism infrastructure within the Kansai corridor, which spans from Osaka to Kyoto, as one of the key drivers for portfolio growth. Kobe, one of Japan’s first ports that opened to international trade and a city with a population of 1.5 million, is increasingly improving its tourist traffic, he added.
“Kobe still lags behind Osaka and Kyoto in tourist access and has room for growth. Its high living standards and strategic location make it a compelling opportunity,” Oh said.
This April, Kobe Airport launched international flights to South Korea, Taiwan, and China. The city is also advancing major urban redevelopment through 2029 to strengthen infrastructure. These efforts, alongside the Osaka Expo 2025 and a planned integrated resort on Yumeshima Island, are expected to raise the region’s profile and bolster its hospitality sector, he noted.
Invictus views the deal as a more attractive entry point in valuation compared to the assets in overvalued areas like Tokyo, he added.
Tojo No Mori Country Club, founded in 1972, has a long-standing presence. With a solid EBITDA margin of 22%, the asset’s sizeable long-term debts would also allow the sponsor to engage in active financial engineering and strategic refinancings to drive returns, Oh said.
The investor plans to focus on operational improvements and is considering scale-up or bolt-on acquisitions. Invictus is already in discussions with three potential candidates for follow-on deals, he added.
The deal was sourced privately and negotiated with the owner for several months. It engaged with Japan-based law firms and did not involve a financial advisor, Oh said.
Invictus financed the deal through a combination of capital from South Korean and international limited partners (LPs). Looking ahead, it plans to expand the investor base across Asia-Pacific, targeting family offices and high-net-worth individuals in Singapore and Hong Kong for the next deals, he noted.
Founded in February 2023, Invictus PEA made its first South Korean buyout the following year by acquiring Daewon Green Bio, a South Korean food waste disposal company, for KRW 60bn (USD 45m) jointly with VIG Partners.