Thursday, 22 June 2017
Registration and refreshments
Hideya Sadanaga, Head of Private Equity Investment Department, JAPAN POST BANK
Private Markets Investing in 2017: Finding opportunity in the face of volatility
2016 was a year of challenges for private markets from a macro perspective - Brexit, and the US presidential election, among other factor - all contributing to a new norm of global volatility. Yet market uncertainty creates opportunity for savvy GPs with differentiated strategies and creative approaches to achieve outperformance in unstable markets. How and if these macro developments will affect the PE industry, and Japan as an investment destination, remains to be seen, as the business community waits for macro developments and formulates strategies to navigate potential issues. In this session, a panel of leading investors will share insights into current market challenges and the near-term prospects for PE and other private market asset classes.
- How are macro trends impacting private equity and other private market asset classes worldwide and in Japan?
- What differentiates those GPs who can meet the challenge and continue to deliver standout returns?
- Where are the next investment opportunities - is it based on geography, sector, or do you have to be good at finding great investment opportunities regardless of trends?
- How do opportunities in Japan compare with other geographies and can you expect current fund vintages to deliver the same attractive returns as in the past?
- What predictions do the experts have about investment opportunities for Asian investors given the Trump presidency and the upcoming Brexit implementation?
Moderated by: Tim Burroughs, Managing Editor, ASIAN VENTURE CAPITAL JOURNAL
Troy Barnett, Partner, ADAMS STREET PARTNERS
Kirk M. Beaton, Partner, LEXINGTON PARTNERS
David Gross-Loh, Managing Director, BAIN CAPITAL
Anthony Miller, Partner and Chief Executive Officer, PAG JAPAN
||Networking coffee break
Return of the buyout market
We have seen a number of buyout deals the past 12 months, including corporate carve-outs, suggesting that this is the start of a wave of opportunities for large-cap firms. There is government pressure for corporates to sell underperforming assets, and PE is primed to reverse their fortunes. Also, non-core profitable divisions are for the first time being divested so that the capital can be reinvested in offshore acquisitions in the hunt for growth. In this session, a panel of leading GPs will share their views and predictions on the buyout opportunity, including the following:
- What does the pipeline for deals look like in 2017 and beyond?
- How competitive is the market and what multiples do GPs expect to pay?
- What is causing a shift within the Japanese corporates to divest a greater number of large-scale assets?
- What is the industry doing to communicate the value of PE as a buyer of Japanese companies to the domestic business community and government?
Moderated by: Togo Okonogi, General Manager, Alternative & Fund Investment, NISSAY ASSET MANAGEMENT
Atsushi Akaike, Partner, CVC CAPITAL PARTNERS
Kimihiro Fukuyama, Deputy Director General, Growth & Cross Border Investment Dept., DEVELOPMENT BANK OF JAPAN
Kazuhiro Yamada, Managing Director and Head of Carlyle Japan Buyout Advisory Team, THE CARLYLE GROUP
Reijiro Yamamoto, Founding Partner, INTEGRAL
The middle market: Update from the centre of the Japanese PE industry
Japanese domestic GPs that operate in the mid-market have been out in force, successfully raising new funds over the past 12 months. This is due to strong returns from the last vintages attracting foreign capital, as well as an expanding domestic LP universe. Despite the large sums of dry powder in the market, deal flow is expected to remain strong as founders looking for a growth partner or with succession issues continue to look to PE as a buyer. However, there is a concern that competition deals may drive up valuations and upset the market conditions that made the last vintage a success.
- Where will GPs find the businesses that can deliver growth in Japan?
- What is the outlook for valuations and returns from the latest vintage?
- How do you source propriety succession deals?
- What has driven founders' change of attitude to now look at PE?
- How has the LP base changed and what do they expect from the Japan mid-market?
Moderated by: Toru Masuda, Corporate Officer (Alternative Investment), SUMITOMO MITSUI TRUST BANK
Tatsuo Kawasaki, Founding Partner, UNISON CAPITAL
Shinichiro Kita, Senior Partner, ADVANTAGE PARTNERS
Koichiro Yasuda, Chairman and Managing Director, BDA PARTNERS
Masamichi Yoshizawa, Representative Director and Partner, THE LONGREACH GROUP
The domestic LPs' view: Venturing into private markets
Japan's limited partners have ramped up their investments into alternative assets over the past year as they hunt for yield in a low-growth environment. There have been some notable commitments from a number of LPs as institutions make strategic hires to grow their internal capabilities to manage an alternatives programme, and more are on the horizon. Japan is now firmly a hot spot on the global fundraising map. In this session, a panel of leading domestic investors will discuss their investment strategy, portfolio construction philosophies and outlook for making commitments both at home and abroad.
- What factors are causing domestic LPs to commit to PE and how widespread is this expected to become across the LP universe?
- How are pension funds selecting advisors and partners for making investments?
- What top tips would LPs already on the alternatives journey share with new investors?
- How do LPs hedge against currency volatility as yen investors?
- What geographies and fund types are LPs examining and investing in?
Moderated by: Tatsuya Kubo, Managing Director, HARBOURVEST PARTNERS (JAPAN) LIMITED
Tadasu Matsuo, Head of Alternative Investment,Credit and Alternative Investment Department, JAPAN POST INSURANCE
Kengo Torii, Portfolio Manager, DENSO PENSION FUND
Executive address: Utilization of data in PE market: approach for constructing an optimal portfolio
While "scientific" approach represented by modern portfolio theory is the mainstream for traditional asset investment, it is commonly recognized that there remains a strong "art" flavor in alternative asset investment including PE. However, in the rapidly expanding market, as a result of improvement of disclosure by the GPs, accumulation of various data, and advancement of analyses involving technological evolution, approach to portfolio construction is expected to advance to a new stage. In this session, we will attempt to make visible what was previously only conceptual through the following points.
- How much and how is data accumulated relative to market size?
- What can this abundant data be used for?
- Is the commonly accepted risk / return of various strategies really correct from the viewpoint of data?
- How to apply data to PE portfolio construction?
- What are the problems in benchmarking?
Tomoko Kitao, Managing Director, HAMILTON LANE
||Networking coffee break
Future tech panel: How industry transformation can be harnessed by private market investors
Changes in technology present new opportunities and risks for investment decisions and portfolio value creation. How investors harness this potential disruption to invest in cutting-edge businesses, enhance current portfolio companies, and future-proof their own business is key. What will be the next wave of technologies and services to disrupt the market, and how will this affect GPs and their investments? Drones, autonomous driving, AI, AR/VR - all have the potential to revolutionize business models and industries.
Our panel of experts will share their views on the biggest mid-term risks and opportunities in Japan, and how to incorporate new technologies via different innovation models at both the portfolio and fund levels.
- What fundamental technology shifts in the next 5-10 years will have the biggest impact on investment theses and portfolio returns?
- How might these technologies change the GP business - for better or for worse?
- What innovations are already changing the way an industry works? Which sectors present the greatest risks and rewards in Japan?
- How can GPs and their portfolios best take advantage of new and potentially disruptive technologies?
Moderated by: Paul Ford, Partner, KPMG FAS CO LTD.
Ryo Fujii, Managing Director and Head of Japan, PERMIRA ADVISERS KK
Claude Leglise, Executive Director, Center for Innovation Leadership, SRI INTERNATIONAL
Emre Hidekazu Yuasa, Principal, GLOBIS CAPITAL PARTNERS
The rise of credit and debt strategies
Funds are increasingly focused on the debt market as they diversify their product offerings and react to LP appetite for committing capital to debt strategies. Next to private equity, private debt is expected to deliver the highest returns over the next three to five years, and typically it can deliver liquidity more frequently than PE. For Japanese investors, understanding how to access global debt opportunities and the investment landscape is essential as the asset class continues to attract interest and the number of funds and offerings increases.
- What macro factors are contributing to the rise of debt-oriented strategies and direct lending specifically?
- Where does private debt fit in an LP's allocation strategy, and are these allocations increasing?
- Are distressed-debt and credit opportunities now a significant part of the PE business?
- As global GPs and funds of funds are now establishing debt funds, will the domestic players follow this trend?
- How can Japanese LPs access global debt opportunities?
Moderated by: Stephen Aldred, Asia Loans Editor, DEBTWIRE
Jim Hildebrandt, Managing Director, BAIN CAPITAL
Barry Lau, Co-Founder, Managing Partner & Chief Investment Officer, ADAMAS ASSET MANAGEMENT
Mitsuo Ozaki, Partner, Head of Sales & Client Relation Japan, BLUEBAY ASSET MANAGEMENT INTERNATIONAL LIMITED
Isamu Sai, Partner, Tokyo, ADAMS STREET PARTNERS
Friday, 23 June 2017
Registration and refreshments
Jesper Koll, Chief Executive Officer, WISDOMTREE INVESTMENTS
Building partnerships with regional banks
In recent years, regional banks have transitioned from curious observers to active investors in Japanese private equity firms. In fact, numerous GPs have found them to be a rich source of capital over the past 12 months as they seek to diversity their investments into private markets. Regional banks can also provide deal flow for GPs as their client base looks for potential investors or outright buyers of their business. What do regional banks look for when opting to invest in a PE firm, what returns do they seek and how can GPs engage them better?
- How should a PE firm approach a regional bank? What key benefits are banks seeking from starting an alternatives programme?
- Why are regional banks now investing in private equity?
- What types of businesses do regional banks see as being right for PE investment and how do they facilitate the partnerships?
- What regional banks have been most active so far and why?
Moderated by: Keiji Mogi, Senior Executive Advisor, BRIGHTRUST PE JAPAN
David Huang, Partner, STRAIT CAPITAL INVESTMENT GROUP
Takahisa Koitabashi, Representative Director, Partner, COO, PHRONESIS PARTNERS
Noriyuki Morimoto, Chief Executive Officer, HC ASSET MANAGEMENT CO. LTD
Asia highlights: Where, why and how for LPs looking to invest in the region
The onus is on GPs to prove they have the capabilities to prosper now that beta and bull markets are a thing of the past. As the asset class continues to mature in the region, GPs are evolving to add to their offerings and institutionalise their firm to attract a wider LP base. Our Asian experts will share their thoughts on delivering performance in the current environment and how international LPs should commit to the region to ensure they have a diversified portfolio.
- How can Asian managers capitalise on the desire from LPs to look outside of the mega global players for regional exposure?
- Are spin-out funds with niche strategies and terms garnering interest?
- What strategies are attracting LPs to funds?
- What performance are GPs in the region expecting from the next vintage?
- How can new LPs looking at Asia create a balanced portfolio across the region? Should you naturally look at China and India first?
Moderated by: Tim Burroughs, Managing Editor, ASIAN VENTURE CAPITAL JOURNAL
Akhil Awasthi, Managing Partner TATA CAPITAL GROWTH FUND
T. J. Kono, Partner, UNISON CAPITAL KOREA
Rick Lu, Managing Partner and CEO, STRAIT CAPITAL INVESTMENT GROUP
||Networking coffee break
Investing in infrastructure: Opportunities in 2017 and beyond
In recent years, institutional investors have increased allocation in infrastructure as a diversification tool to reduce portfolio volatility against the backdrop of slow growth and economic uncertainty. Japanese investors have been among the most active in seeking out infrastructure opportunities across the globe as they take the first steps into alternative investments. While mature markets like North America, Europe and Australia still present the most stable investment arenas, competition for deals is fierce. In this panel, a group of investors and advisors will discuss the opportunity, outlook and predictions for the coming years and how LPs can gain access.
- Which markets and sectors present the best outlook? What are the trends driving the supply of new infrastructure opportunities?
- What is the impact of the global supply of capital and are assets increasingly becoming overvalued?
- What is the role of infrastructure in achieving sustainable returns in an investment portfolio?
- How can domestic LPs select the right partners and geographies for infrastructure investments?
- How are government initiatives opening up new infrastructure opportunities?
Moderated by: Takako Koizumi, Senior Fund Manager, TOKIO MARINE ASSET MANAGEMENT
Hidekazu Ishida, Chief Advisor, SYSTEM2 CO. LTD
Takeshi Ito, Senior Portfolio Manager, AISIN EMPLOYEES' PENSION FUND
Yoshihiro Mine, Senior Consultant, Pension Investment Consulting Dept., DAIWAN FUND CONSULTING
Hideo Ohashi, Director, Real Estate Investment, Private Equity Investment, JAPAN POST BANK
LP-GP discussion: Developing long-term partnerships
Private equity requires a long-term commitment and diversification is key. For LPs new to the asset class, understanding how to develop a programme that is risk adjusted and spread across geographies is crucial to delivering the expected returns across vintages. In this interactive session, a panel of LPs and GPs will tackle the most pressing issues affecting their relationship and the future of the asset class.
- How can GPs help LPs to grow their PE programme so that it matches expectations on fees, terms and investment thesis over the next cycle?
- What level of transparency are LPs expecting, and how can this be delivered in practical terms?
- What can Japanese LPs learn from their international counterparts?
- How should a funds track record be evaluated? Is it based on skill-based returns or timing the market?
- How do LPs manage the back-office administration of funds management effectively?
Moderated by: Soichi Sam Takata, Head of Private Equity, TOKIO MARINE ASSET MANAGEMENT CO. LTD
Hideyuki Inokuma, Chief Administrative Officer, ADVANTAGE PARTNERS
Yoshisuke Kiguchi, Chief Investment Officer, OKAYAMA METAL AND MACHINERY PENSION FUND
Katsushi Sakurai, Senior Manager, Relationship Management,
John Tsui, Managing Principal, PENINSULA HOUSE
Close of conference