TOKYO, Sept 17 (Reuters) - U.S. private equity firm Carlyle Group said on Thursday it has raised 119.5 billion yen ($992 million)for its third fund dedicated to investments in Japan.

Carlyle said it has already used money from the new fund, Carlyle Japan Partners III, to invest in several firms including Oyatsu Company Ltd, which makes noodle snacks sold under the "Baby Star" brand. Carlyle's investments in Japan are now focused on small and medium sized companies.

($1 = 120.4700 yen) (Reporting by Junko Fujita; Editing by Simon Cameron-Moore)