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27
Jun
Day 2 (27 June)
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Agenda09.00 - 09.45JST
Japan Private Equity in 2024 – is this time different?
Japan became the largest regional private equity market in APAC in 2023 at 30% of APAC deal value (vs. 5-10% historically). Deal value hit an all-time high of JPY 5.9T, nearly 2x more than the high-water marks set in 2022 and 2023. These headline growth numbers are as strong as in the first boom of Private Equity in Japan before the global financial crisis, prompting the question: Is this time different?
Bain’s presentation explores the market’s headroom for growth, the momentum of the tailwinds it enjoys today, but also some of the challenges the market may face in the coming years. In the last year, the tailwind of corporate governance improvements received new momentum with TSE’s focus on PBR and capital efficiency. Updates to the M&A code are enabling unsolicited bids and emphasize “market checks” on bids that can provide PE an entry into corporate M&A deal processes. As interest in China wanes, funding aimed at Japan is increasing. In-market investors that capitalize on this interest by growing their fund size must be mindful of the implications: their target universe shrinks, and they may encounter different competitors as they chase larger deals. New-to-market investors that are attracted by Japan Private Equity’s success must be mindful what it really takes to succeed. For all investors, the shifts in competition strengthen the imperative for a very pro-active approach to value creation.
09.45 - 10.30JSTAsia spotlight: Relight the fire
Asian private equity endured a difficult 2023, with substantial drop-offs in fundraising, investment, and exits. China, traditionally the region’s largest market, is unappetising or out-of-bounds for many investors amid concerns about geopolitics and weaker economic prospects. It’s not all bad news. South East Asia has emerged as a fast growing sub region to help with diversification and India’s growth and scale are viewed as a counterpoint to China. DPI is front of mind for investors, and GPs and LPs are having to be resourceful to generate distributions whether that is via secondaries, continuation vehicles or other liquidity solutions. Our panellists discuss where to find the best risk-return and how to access the market whether that is via a regional or country fund.
- How do you make the case for Asia, given performance has trailed other regions?
- What are the best ways to access Asia’s long-term growth story?
- Why aren’t there more sector specialist GPs in the region?
- Is it time to take a contrarian view on China?
10:30 - 11:00JSTNetworking break
Sponsored by
11.00 - 11.45JSTPrivate credit: A popular play
Private credit has become a must-have asset class. Not only can investors leverage longstanding trends connected to the withdrawal of banks from traditional lending, but a higher interest rate environment means they get paid more in the process. LPs have plenty to choose from in terms of risk-return dynamics. However, the lingering question is whether GPs have what it takes to manage positions should macro conditions deteriorate. Our experienced credit investors consider the opportunity set.
- How are macro trends shaping investment opportunities?
- Which private credit strategies currently offer the best risk-return?
- What happens if there is an uptick in defaults by borrowers?
- Where on credit spectrum have Japanese LPs traditionally liked to play?
11.45 - 12.30JSTActivist investors: Disruptive influence
Japan has seen a surge in activist investor campaigns in recent years, spurred by a combination of government policies pushing for better capital efficiency among domestic corporates and more breakthroughs at the board level. High-profile international investors are increasingly looking at the market. For private equity, there are positive and negative consequences. While activists could encourage divestments, they may equally stymy take-private processes by agitating for higher prices. Our market experts assess the activist impact.
- In what ways are governance and regulatory pressure driving the activist agenda?
- How can private equity take advantage of investor activism?
- What can be learned from recent campaigns, both successes and failures?
- Are activist investors approaching Japan differently to other markets?
12.30 - 13.15JSTInternational LP spotlight: Next stop Japan
While managers across Asia are wary about returning to market, a slew of Japanese fundraises have come in oversubscribed and above target. LPs are being cut back or turned away, even as funds increase in size from previous vintages. For international investors looking for Japan expose, it’s not just a matter of access but finding partners that are a good fit for the perceived market sweet spot. LPs explain how they navigate a hot geography.
- To what extent is Japan the attractive Asia investment destination for international LPs?
- Are Japanese private equity firms becoming too big, too fast?
- What more could be done to facilitate LP co-investment?
- How do Japan’s returns stack up globally and within Asia?
13.15 - 14.15JSTLunch
14:15 - 14:20JSTClose of conference
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Jim Verbeeten leads Bain & Company’s Private Equity and Financial Investor practice in Tokyo. He has more than 20 years of management consulting experience. Jim advises private equity clients on commercial due diligence assignments in a variety of industries and has supported clients with fund strategy and performance improvement of their portfolio companies. Jim also leads the development of Bain’s annual Japan Private Equity report. He first joined Bain's Amsterdam office in 1999 and has worked in Europe, North America and Asia. He has been based out of the Tokyo office since 2007.
Azusa Owa is an expert in Private Equity and Financial Investor practice. She has extensive consulting experience across a range of industries and business topics in Japan, the United States and Australia, focusing on supporting private equity clients on commercial due diligence assignments and post-acquisition value creation in a variety of industries in. Azusa graduated with a master's degree in international education policy from Harvard University and a bachelor's degree in education from International Christian University. She earned her MBA from the Wharton School of the University of Pennsylvania, double majoring to earn a master of international studies (in Mandarin Chinese) from the university's Lauder Institute.
Yiqing Wang is the Managing Editor for M&A and ECM, APAC, at Mergermarket. Ms. Wang is leading a team of dedicated journalists across APAC regions to cover PE/VC fundraising, M&A transactions, PE buyouts and exits,etc.
She has been an investigative M&A reporter and researcher since 2009, writing industry news ranging from healthcare, new energy and financial service, etc.
Ms. Wang achieved her master's degree of multilingual multicultural studies from New York University.
Omar is the Managing Director and Country Head for the Philippines, Singapore, and Thailand at Creador.
He sits on the boards of Dali, Asialink, Angkas and UNO digital bank in the Philippines.
He specializes in identifying investment opportunities and expanding Creador’s presence across Southeast Asia. With 15 years of experience at HSBC, including roles in global banking and specialized finance, Omar brings a wealth of international expertise from roles across Europe and Asia. He is a qualified barrister, holding degrees in Law and Finance.
He is also responsible for fundraising at Creador and managing the firms’ new investors.
Mr. Steven Wang is Founder & CEO of HLC and a visiting professor of Tsinghua University. He has nearly 20 years of experience in the medical industry and healthcare investment and focuses exclusively on healthcare services, medical device and pharmaceutical sectors. Before founding HLC, he is former senior partner and investment committee member of CDH. Prior to CDH, Mr. Wang served at Avenue Capital, Lehman Brothers (London) and Becton Dickinson Group. Over the last ten years, Mr. Wang was responsible for transactions totaling more than 1.5 billion dollars, including mergers & acquisitions, restructuring of publicly listed companies, growth and early stage investments.
Saurabh Chatterjee is a Managing Director at ChrysCapital where he leads the Fundraising function, and is also a voting member of the firm’s investment committee. Prior to joining ChrysCapital in 2016, he was with Providence Equity Partners’ investment team, where he covered the TMT sectors. Before Providence, he worked at the Boston Consulting Group and CIVC Partners, a Chicago-based middle market private equity firm. Saurabh received an MBA from Kellogg School of Management and a BA in Economics from Carleton College.
Lisa Sun is a Managing Director and Co-Head of the Secondaries and Liquidity Solutions (SLS) team at BlackRock. She is a member of the SLS Investment Committee and is responsible for all aspects of the SLS business including investment strategy, deal sourcing, structuring and execution, portfolio construction, risk management and business development/capital formation.
Prior to joining BlackRock, Lisa was an Investment Principal at Coller Capital, a global private capital secondaries firm, where she was responsible for origination, diligence and execution of secondary deals across a variety of structures including LP portfolios, GP-led continuation vehicles, single asset transactions, co-investments, fund preferred equity and corporate/captive team spinouts.
Prior to Coller Capital, Lisa worked at TPG Capital in Hong Kong covering Asia buyout and growth equity, and at Goldman Sachs in New York in the natural resources investment banking team.
Lisa graduated with an MBA from Harvard Business School, and has a dual degree Bachelor of Science from the Wharton School and Bachelor of Arts from the College of Arts & Sciences as part of the Huntsman Program in International Studies and Business from the University of Pennsylvania.
Xiaodong Chang is a senior fund manager at private equity investment group with Tokio Marine Asset Management (TMAM) since 2011. She is responsible for sourcing, due diligence, monitoring, clients reporting of private equity and private debt funds globally.
Prior to joining TMAM, she worked at the Investment Banking Group of Nomura Securities in Japan.
She received a M.S. in Computer Science and Information Technology from University of Pennsylvania and a B.A. in Commerce and Management from Hitotsubashi University. She is a Certified Member Analyst of the Securities Analysts Association of Japan (CMA).
Jon oversees the portfolio construction, risk management, analytics and research that support Northleaf’s private equity and private credit funds and product development activities, and is a member of the Private Credit Investment Committee.
Prior to joining Northleaf in 2016, Jon was Managing Director, Global Head of Strategy, Risk and Analytics at Värde, a global alternative asset manager. Previously, Jon was a Principal with Bain & Company where he focused on alternative investments and asset management. Jon began his career with HSBC and PricewaterhouseCoopers.
Jon received an MBA (Dean’s List) from the Rotman School of Management, University of Toronto and a B.Sc (International Management) from the University of Manchester.
Ian Anderson (London) joined KKR in 2014 and is a Managing Director in the Credit & Markets business. He serves as a portfolio manager for the firm’s private credit funds and portfolios and as a member of the European Private Credit Investment Committee. Prior to joining KKR, Mr. Anderson was a vice president at Lazard in the corporate finance department, advising a diverse range of European and global corporate clients on M&A transactions and restructurings. Previously, Mr. Anderson worked at Key Capital, an Irish boutique capital markets and asset management firm. Mr. Anderson holds a first class degree in Engineering from Dublin University, Trinity College and is a CFA Charterholder.
Rafael is responsible for Muzinich’s Private Debt business in Iberia, co-head of the European business, and a member of the firm’s private debt investment committee.
Prior to joining the firm 4 years ago, he spent 9 years originating, analyzing and executing mezzanine / hybrid capital investments in Southern Europe for Hutton Collins, where he led and/or was involved in transactions such as Everis, Aquafil and Caffé Nero, amongst others. Prior to this, he spent 2 years at midmarket Spanish private equity firm Mercapital, and 5 years in European Leveraged Finance at Merrill Lynch.
Jeffrey is a Partner and CIO of Credit Investments at Primavera Capital Group, and chairs the firm’s Credit Investment Committee. Prior to joining Primavera, Jeffrey led and managed private investments in partnership with leading sovereign wealth funds, corporates and family offices. He was an investor and director of Village Roadshow Entertainment Group between 2012 and 2017. Previously, Jeffrey worked at Och-Ziff Capital Management Group, The Blackstone Group and Morgan Stanley. Jeffrey earned his AB in Social Studies from Harvard University, graduating Phi Beta Kappa, magna cum laude and as a John Harvard Scholar. He holds an MBA from Harvard Business School.
Paul Ford leads KPMG Japan’s Private Equity Deal Advisory and Transaction Services practices, with over 20 years of deal execution and industry experience in Japan, Hong Kong and Canada. In this capacity, Paul directly acts for global private equity clients operating in Japan, and leads KPMG’s broader support of domestic Japanese private equity funds and their portfolio companies. Paul also focuses on the technology sector more broadly, helping Japanese technology leaders such as Rakuten and SoftBank execute their global M&A program.
Paul also leads KPMG’s Japan Deal Advisory digital transformation initiative and ASPAC Value Creation Center of Excellence, exploring how data and analytics can transform the insights KPMG delivers to clients in-deal and post-deal, in particular to help private equity clients identify hidden value attributes during the diligence phase and execute the value creation agenda post-deal.
In addition to 15 years with KPMG, Paul has held executive management roles in the PE and technology industries, including the senior Finance role in a venture-backed life sciences software company. Paul is a permanently Japan-based partner of KPMG FAS Co., Ltd.
Toby Rodes co-founded Kaname Capital in 2018 to bring deep fundamental analysis and engaged ownership to Japanese small caps, a deep pool of operationally capable companies with strong product focus that too frequently suffer a material valuation discount because of substandard governance practices. Passive and conflicted "allegiant" shareholders have simply refused to hold boards accountable across the market cap spectrum for delivering on their potential ROE, a core reason for Japan's multi decade economic malaise. Kaname aspires to be a thoughtful, involved, and long-term "principal" owner of quality businesses with substantial valuation rerating potential. Prior to co-founding Kaname, Toby spent 12 years at Boston based institutional manager GMO in the Fundamental Active Team, where he managed roughly $4bn in both large and small cap equities in Japan. His greatest professional interest has always been in the small cap discipline where his Japanese language skills and ability to create relationships with management teams led to an informational advantage. His professional career started in the “Think Tank” trenches of Washington DC before moving to Japan from 1993 to 2004, first as a Rotary Japan Ambassadorial Scholar and later for graduate work at Keio University, Tokyo. His investment career started in equity research at Dresdner Kleinwort Benson and Nikko Salomon Smith Barney in Tokyo where he led some high-profile IPOs but determined his calling was the buyside. After ten years of living in Japan, he attended the Harvard Kennedy School in 2003 which served as an intellectual bridge to GMO. He is presently spending half the year in Japan as well as serving on the Japan Society of Boston’s Board of Directors.
Nicholas Smith has ranked No.1 for Japan strategy in Asiamoney’s Brokers Poll eight years in a row from 2013 to 2020 then a ninth time in 2022. He writes a popular weekly strategy report called Benthos, whose name means the creatures that live at the bottom of the sea - reflecting a value-oriented and activist slant to the market as well as his passion for deep diving. Nicholas has been in Japan since 1987, covering Japanese equities since 1990. He first came to Japan as British Universities and Royal Navy & Royal Marines judo champion, before joining Jardine Fleming Securities in the tumult of 1990. During his 10 years there, he ranked No.1 in the chemicals & oil sector and was head of the global oil & chemicals team. He then worked for four years in hedge funds, making investments across all sectors. Nicholas joined CLSA in 2011. He has a BSc in Physics from London University and is fluent in Japanese.
Jesper Koll has been researching and investing in Japan since becoming a resident in 1986.Over the past two decades, Jesper has been recognized as one of the top Japan strategists/economists, having worked as Chief Strategist and Head of Research for U.S. investment banks J.P. Morgan and Merrill Lynch. He currently serves as Expert Director for the Monex Group and the Japan Catalyst Fund (Japan’s 1stretail investor based corporate engagement/activist fund). His analysis and insights have earned him a position on several Japanese government and corporate advisory committees, including Governor Yuriko Koike’s Advisory Board. Jesper serves as Board Director of OIST, the Okinawa Institute for Science and Technology and is a Founder of the Asia Society Japan and heads their Policy Committee. He is one of the few non-Japanese members of the Keizai Doyukai, the Japan Association of Corporate Executives. He has written three books in Japanese and, in 2021, created the video/pod-cast series “Japan - Capitalism that works”.
Jesper is an economist, angel-investor, patron; and yes, a Japan Optimist.
Nels Hansen is a partner in our Corporate/M&A practice group, based in Tokyo. He has helped clients complete hundreds of billions of dollars in completed mergers and acquisitions, hostile or contested transactions, investments and joint ventures, acting primarily for technology, media and telecommunications companies, energy-related companies and private equity and venture capital funds.
He also has assisted numerous targets of activist shareholder situations in the US and Japan. This experience, together with mandates on behalf of engagement and/or activist hedge funds themselves in the US and Japan, helps our Tokyo team to guide Japanese and international clients in activist shareholder situations with a uniquely global perspective and understanding of both sides of the table.
His assistance of international clients with public and private company targeted M&A in the US, Japan and Europe, and private equity and venture capital investment in Asia, Europe and the US, form the core of his practice. In 2018, the FT Innovative Lawyers Asia-Pacific Awards selected Nels as a 'Commended' lawyer in the 'Accessing New Capital and Markets' category for assisting a client in a combined venture capital and project financing.
Nels has served on the Japanese Law Translation Council of the Ministry of Justice since April 2020. Since 2015, Nels has served at Keio Law School as the lecturer for the course "M&A and Strategic Alliances." Nels previously worked in Japan's Ministry of Economy, Trade & Industry and at the Research Institute of Economy, Trade & Industry.
He is a member of the Tokyo Bar Association.
Pamela is a partner and investment committee member for the Morgan Stanley Private Equity Solutions Team and has 18 years of industry experience. Prior to joining the firm, Pamela was a management consultant with McKinsey & Company's corporate finance practice in Hong Kong, responsible for investment opportunity identification, deal advisory, merger management and strategy development. Previously, she was a management consultant with Monitor Group, specializing in marketing strategy for clients across Asia, and a member of the corporate finance team with Lehman Brothers in Hong Kong. Pamela has a Law degree (first class honors) from the University of Hong Kong and an M.B.A. with honors in finance and management from the Wharton School of the University of Pennsylvania.
Cindy Yan leads the direct and co-investment activities and portfolio management for Ontario Teachers' in Asia Pacific. She is based in Ontario Teachers' Hong Kong office.
She has over two decades of combined experience in Private Equity, Management Consulting and Corporate Operations and General Management. Prior to joining Ontario Teachers, Cindy was a Partner with Advantage Partners, an Asia focused mid-cap buyout firm, where she led various buyout and late-stage growth investments in Asia and Japan/Asia cross-border value creation for the Japanese portfolio companies. The investments are across Technology, Consumer, Services (Consumer & Business), Health/Wellness, and various Industrial sectors. Prior to that, she worked at Boston Consulting Group and the 999 Group.
Cindy holds a BA from Sichuan International Studies University and MBA from Harvard Business School.
Edward J. Grefenstette serves as President/CEO and Chief Investment Officer of The Dietrich Foundation, a ~$950 million charitable foundation that was formed following the passing of William S. Dietrich II in October 2011. The Dietrich Foundation primarily supports higher education institutions and other civic and charitable organizations in Western Pennsylvania. Ed previously served as Treasurer/Chief Investment Officer of Carnegie Mellon University (CMU), where he was responsible for managing its endowment and tax-exempt debt program. Prior to CMU, he co-founded a small-cap private equity fund, following seven years in investment banking and law. He earned his AB in Economics with honors from Georgetown University, a Juris Doctor with honors from Georgetown University Law Center, and an MBA in Finance and Strategy with honors from CMU. He currently serves as a trustee, director and/or investment committee member of CMU, the University of Pittsburgh (IC chair), the University of Pittsburgh Medical Center (UPMC), The Hillman Company, and The Hillman Family Foundations, as well as an advisory board member of Commonfund Capital.
Yelin Wen, investment officer, joined the Robert Wood Johnson Foundation in February 2016. Yelin’s main responsibilities include monitoring, sourcing, evaluating and recommending potential new buyout, venture, real estate, energy managers in the illiquid space. Yelin also present investment performance and strategy at investment committee meetings.
Previously, Yelin was a vice president with the J.P. Morgan Asia NY Investor team. In this role she executed brokerage trades, developed investment ideas and recommendations, and explored private equity opportunities for investors. She also served as a credit default swap broker with Cantor Fitzgerald, a sales and product manager with Intercontinental Exchange, and a credit trader with J.P. Morgan.
Yelin earned BA degrees in both economics and mathematics from the University of Virginia, and received the Chartered Financial Analyst (CFA) designation in September 2011.
Yelin lives in New York City with her husband and daughters and enjoys golf and travel.