<article>Japanese asset manager <a href="https://www.dealstreetasia.com/stories/japan-plans-13b-share-sale-japan-post-sources-81615/" target="_blank" rel="noopener">Japan Post Bank</a>, which set up a private equity arm in late 2015, is now looking at co-investment deals with General Partners (GPs) to tap into Japan&#8217;s small and mid-market space.</article>

Japanese asset manager <a href="https://www.dealstreetasia.com/stories/japan-plans-13b-share-sale-japan-post-sources-81615/" target="_blank" rel="noopener">Japan Post Bank</a>, which set up a private equity arm in late 2015, is now looking at co-investment deals with General Partners (GPs) to tap into Japan&#8217;s small and mid-market space.
According to a report from Private Equity International this week, the Tokyo-based bank will ramp up co-investments with mid-market managers as it “expects more and more deal flow in Japanese private equity, especially because of homegrown private equity firms focused on the mid-cap and small-cap space&#8221;.
The report quoted Tokihiko Shimizu, the Managing Director and head of private markets investment at Japan Post Bank, as saying the implementation of the Stewardship Code in 2014 by the Japan Financial Services Agency and the Corporate Governance Code, which took effect in 2015, have improved the return on equity of Japanese-listed companies.
“Now we see companies selling down their non-core business or real estate in order to improve their return on equity,” he said.
While the names of the prospective GPs for co-investment deals were not disclosed, Japan Post Bank is reportedly part of the Western Digital-led group of bidders that has made an offer for <a href="https://www.dealstreetasia.com/stories/western-digital-group-offer-17-4b-toshibas-chip-unit-80968/" target="_blank" rel="noopener">Toshiba&#8217;s chip unit at $18 billion</a>. The group also includes INCJ, Development Bank of Japan and private equity heavyweight KKR &amp; Co.
The bank, which has been diversifying into alternative assets space of late like many other state-owned funds or units, said at a media briefing last year in September that it was also investing in hedge funds among other asset classes. The move was seen as an effort to maximise revenues amid a low interest climate in Japan and economic pressures.
Japan Post Bank manages assets worth $1.9 trillion while its alternative investment portfolio, which includes private equity, hedge funds, infrastructure and real estate investment funds is around 3 per cent of the portfolio.
Meanwhile, its parent, Japan Post Holdings Co, had recently announced a loss in its first full year as a listed company and is reportedly going to announce a $12 billion share sale, marking the first equity offer from the group in two years.
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Japan Post Bank up for PE co-investments in country's small, mid-market space: Report

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Japan Post Bank up for PE co-investments in country's small, mid-market space: Report

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