Top of mind at Dalton Investments – Private Equity Gears Up for the Siege of Japan Inc.

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.