A senior executive with a major US investment fund says more Japanese firms are turning to private equity in search of growth.
KKR Co-Head of Global Private Equity Pete Stavros told NHK in an interview that reforms underway in Japan make it more attractive to private-equity investors.
He said: “Those reforms are driving greater confidence on the part of investors. So what we’re seeing, for example, is greater transparency, more independent boards of directors and greater capital efficiency.”
KKR manages more than 100 trillion yen, or 655 billion dollars, in assets worldwide. It already has a strong presence in Japan, where it has participated in 20 deals.
KKR specializes in acquiring majority stakes in companies, then working with management to enhance corporate value.
Stavros said Japanese companies are still over-diversified, and have too many non-core subsidiaries. He said that can spread capital and management attention too thin.
Stavros noted that Japanese workers have a tremendous work ethic and knowhow, as well as a strong commitment to quality.
He added that the business community is embracing reforms, and this is being driven from within Japan, not by outsiders. He says that as a result, there is plenty of opportunity to come.
