KKR to push further into Japan as yen hovers at 32-year low
US private equity group KKR plans to boost its exposure to Japan, taking advantage of low corporate valuations and weakness in the yen to increase its investment in the country.
The New York-based investor, which manages nearly $500bn in assets including a $15bn Asian private equity fund, wants to invest more of the firm’s own balance sheet directly into Japan and fast-growing Asian international hubs such as Singapore.
“Our commitment to Japan continues to go up, not only in private equity but in real estate, infrastructure and our credit business,” said Henry McVey, chief investment officer of KKR’s $25bn balance sheet, told the Financial Times in an interview.
McVey said the rising foreign dealmaking activity was a result of Japan’s business reforms, which have focused conglomerates on profitability.
“These companies are becoming much more competitive globally, especially with an increasing focus on shareholder value.”
A KKR report due to be published on Wednesday will show that McVey expects Asian economies to outperform large economies in Europe — benefiting from technological trends and rising consumer spending, while inflation remains manageable.
“[We] heard several executives express concern that it might be a developed country, like the United Kingdom, not an emerging one like Thailand, Malaysia or Indonesia, that could present more global risk this cycle,” said McVey of a recent trip to Tokyo and Singapore.
This story originally appeared on: Financial Times - Author:Kana Inagaki
