Japan-Based LPs Targeting Private Equity Opportunities Outside of the Far East – December 2012

by Wan Ping Chia

  • 14 Dec 2012
  • PE

There are currently 95 Japan-based investors with an appetite for private equity funds. Seventy-five percent of this investor pool is looking to invest outside of the Far East, in regions such as Europe, North America and other parts of Asia. Corporate investors form the largest proportion of these Japanese LPs who will invest outside of the Far East, representing 25% of these investors. Private sector pension funds (17%), insurance companies (15%), asset managers (11%) and banks (10%) stand out as other prominent investor types in this pool. The rest of the investor universe is made up by institutions such as fund of funds managers, public pension funds, investment companies and investment banks.

Japan-based investors with an appetite for private equity opportunities outside of the Far East have more than $38.7bn currently allocated to the asset class in total. Banks contribute the largest allocation of any investor group in this pool, representing 29%, or $11bn in aggregate capital currently allocated to private equity. Insurance companies and private equity fund of funds managers represent two other major investor types in terms of capital allocated to private equity by these Japanese investors, with $8.2bn and $7.5bn currently allocated to the private equity asset class respectively.

Eighty-three percent of Japan-based LPs with an appetite for private equity investments outside of the Far East will consider committing to new private equity fund opportunities in the next 12 months. These investors will invest in a variety of fund types but are mainly interested in venture capital, buyout and growth vehicles.

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