Regrowth Capital Management is nearing a final close on its debut fund at just under its ¥10 billion hard-cap ($62.7 million), chief executive Atsushi Urushitani confirmed. The Japanese direct secondaries shop, which targets later-stage start-ups, secured backing from Japan Investment Corporation and 14 other domestic institutions after a first close in March 2024.

RGCM Fund I had invested around $20 million across five deals as of February, generating a 14 percent IRR and 1.1x MOIC. The fund maintains flexibility to invest in both secondaries and primary funding rounds, with plans to pursue 15 start-ups total and had reached approximately 30 percent invested as of March.

The firm's timing appears advantageous as recent Tokyo Stock Exchange listing changes make IPO exits more challenging for Japanese start-ups. This environment creates increased demand for secondaries, with many VCs approaching Regrowth to sell shares as their fund lives end, allowing the firm to be highly selective in its investments.