June 30, 2021
According to Jackie Wong at The Wall Street Journal and Prequin, Private-equity firms have built a large war chest to target Japanese companies, sitting on $14.9 billion of cash, ready to snap up cheap Japanese firms.
The backbone for this is a combination of 1) corporate Japan is flush with cash, 2) cheap valuations and 3) real progress on corporate governance. We see this as a significant tailwind for Japanese equities which continue to be under-represented in global portfolios.
View the article here.