Carlisle predicts growth in post-epidemic transactions in Japan

Carlyle Japan Aponia Business Leader Predicts Growth in Private Equity Trading as News post-cash business environment աճ Increasing pressure on companies to achieve carbon neutrality leads to acquisitions և spin actions.

In an interview with the Financial Times, Kazuhiro Yamada said that the epidemic is accelerating the sale of assets and the purchase of new technologies among Japanese companies, which may have taken years to make such decisions in the past.

“Consumer behavior” [the] “As a result of Covid-19, the business model has changed dramatically, so the companies that have been hit have no choice but to make structural reforms,” ​​said Yamada, adding that the availability of cheap financing from Japanese megabank makes the environment particularly attractive to private equity.

The backlash will be based on the excitement that has driven the world’s largest private equity firm to Japan. Several groups including KKR, believe me, the country is the richest market outside the United States.

The average size of PE deals in PE aponia is rising, but Carlyle has focused on smaller cases, often involving companies with which she has been in negotiations for several years. Since 2000, Carlyle, which has been in the country for more than two decades, has invested more than $ 3.2 billion in 27 Japanese companies.

Bain & Co has an advisory group counted that private equity firms together raised a record $ 477 billion in unspent capital focused on the Asia-Pacific region by the end of 2020.

Private equity slowed in the first half of last year, but Yamada said rates were accelerating to 2021. “The number of deals we are seeing is definitely higher than 2019 վերջին the last half of 2020,” he added.

According to Dealogic, 25 private equity investments were made in Japanese companies this year at a cost of $ 8.6 billion – other similar investments – $ 9.5 billion in 2020, compared to $ 10.3 billion in 2019.

Large companies such as: Hitachi և Panasonic will continue to be pressured by shareholders to sell non-core assets, says Yamada. But he added that about half of the Carlyle deal pipeline would emerge problems of legal succession, as the corporate retirement burden has led many to consider previously unbelievable options, including private equity sales.

Global pressure from companies to reduce carbon emissions is also expected to force companies to buy new technologies to move away from traditionally clean traditional areas. “It will obviously be an investment opportunity for us,” Yamada said.

Carlyle withdrew its stake in WingArc1st in March after the software company launched its initial public offering on the Tokyo Stock Exchange. It marked the 18th exit from a Japanese company, eight of which were made through an IPO.

Public lists continue to be the preferred option for many of the CEOs Carlyle has worked with in Japan ոնի are of great value to companies, Yamada said.

“It is very possible that future marketing will be known as a fund that will allow IPOs,” he said, although the outcome of an IPO is more time-consuming than selling it to a competitor of a private equity group.

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