Welcome to the 11th annual
AVCJ Private Equity & Venture Forum \ Japan

Japan Private Equity: Riding a new wave of confidence?

Private Equity fund managers in Japan have for a long time felt as though a dam was poised to burst and release a torrent of deals: Perhaps because of the government's protective instincts when it comes to allowing companies to fail, change has been slow coming. It seems though that the recent global financial crisis might be the impetus investors have been looking for: Japanese companies, recognising the limitations of their domestic markets, have set their sights on distant horizons, seeking to transplant successful Japanese businesses into overseas markets. Japanese investors meanwhile are similarly looking outward for returns from the "alternative" asset classes, including private equity as well as real estate and infrastructure.

Recently, and despite its occasional side-swipes at the industry, the government of Japan has set up its own de facto PE fund manager in the shape of INCJ (the Innovation Network Corporation of Japan). No reflection of the now-dissolved IRCJ, this ¥90.5 billion body's guiding principle is to "promote the development of next-generation businesses through 'open innovation'". Government guarantees on loans made to invested businesses give INCJ in the order of ¥900 billion (US$ 9bn) to play with - not a sum to be sneezed at: Innovation has received lots of investor interest in the past year, and developments such as Honda's astonishing Asimo and Toyota's i-Real personal mobility vehicle (the name surely a nod to Steve Jobs) demonstrate that Japan continues to lead the world in development and execution.

AVCJ's Private Equity & Venture Forum/Japan 2010, the eleventh annual installment of the series, will examine what's really changing in Japan's approach to business, investment, and the rest of the world. To do so we're bringing together the most senior commentators in the PE and finance industries, and you. Don't miss your invite. Email Anil now.