Ariake Capital, a Japanese hedge fund with $320 million in assets, founded by ex-Goldman Sachs Group Inc. analyst Katsunori Tanaka, is on track to make approximately $55 million by selling a significant portion of its stake in a regional bank. The fund is negotiating the sale of its around 20% holding in Chiba Kogyo Bank Ltd. for roughly $133 million to Chiba Bank Ltd. Ariake had initially acquired the stake for $11.7 billion. The potential deal was disclosed after reports by Nikkei. If the transaction goes through, Ariake stands to gain around $8.3 billion, equating to a 71% return on its investment. This success adds to Ariake's impressive performance, achieving over 300% returns in the few years since its establishment. The fund adopts a proactive investment approach, with a focus on regional banks in Japan, betting on those with plans to enhance their business and stock values amid the rising positive interest rates in Japan.

In another potential victory for Tanaka, reports surfaced of Yamanashi Chuo Bank Ltd., another company in which Ariake has an interest, planning to establish a business partnership with other banks, causing Yamanashi Chuo's shares to surge by 6.9%. Ariake holds approximately 1.53% of Yamanashi, a bank that primarily operates in a region west of Tokyo.

Ariake garnered investments from US family offices, reflecting the growing global investor interest in Japan and in fund managers capable of generating substantial returns. Prior to establishing Ariake, Tanaka had a successful 19-year tenure at Goldman Sachs, primarily as an equity analyst focused on Japan's financial sector, ultimately rising to the position of managing director.

Japanese banking shares have performed well this year, outpacing exporters like automakers due to concerns over US tariffs. The Topix index's banking segment has risen by around 14% this year, positioning it as one of the top-performing sectors.