Japan Private Equity and Buyout Boom
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Private Equity
and investment funds are currently experiencing a boom in Japan. According to
Asian Venture Capital Journal, Japan has attracted $7.3 billion in new
investment in 2003 versus $2.4 billion in 2002. There are now over 40 funds in
Japan. |
Japan 2003 Private Equity Deals
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The 2 major
deals of last year have been:
- sale of
Japan Telecom by Vodafone to Ripplewood for around $2.2 Billion
- purchase for
$ 915 Million by Colony Capital from Daiei of some assets centered around the
Fukuoka Dome. |
Japan Private Equity and Buyout Boom
|
|
Private Equity
and investment funds are currently experiencing a boom in Japan. According to
Asian Venture Capital Journal, Japan has attracted $7.3 billion in new
investment in 2003 versus $2.4 billion in 2002. There are now over 40 funds in
Japan. |
Japan 2004 Landmark Private Equity Exits
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Ripplewood again sold for 3B$
to Softbank (Yahoo BB) the participation in Japan Telecom that it just
bought for 2.2B$ the year before. (May 31st) |
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For 2004, the landmark event has been the IPO of Shinsei Bank
Shinsei was bought for $1.1 Billion in 1999 and the float of 33% of its shares
has brought $ 2.2 Billion to the investors led by Ripplewood which include
General Electric and Deutsche Bank. |
Reasons
behind the Private Equity Boom
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The expansion of
the market can be attributed to the dissolution of cross shareholding by
Japanese banks and financial
institutions that has left many Japanese companies which traditionally never pay
attentions to interest of shareholders, very vulnerable to a take over by
foreign funds. The disposal of bad loans has also provided some investment
opportunities, however Japanese banks have avoided so far to sell loans on
companies that could be rehabilitated. |
Additional Private Equity
Resources
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- a discussion board
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