FinCity.Tokyo (東京国際金融機構)

Thank you IPEM for granting us an opportunity to talk about the excitement surrounding Japan's private equity market at its upcoming IPEM Paris conference. FinCity.Tokyo (東京国際金融機構) would also like to thank the Japanese PE professionals who will attend IPEM to join this session. Mr Megumi Kiyozuka, Mr Ryosuke Iinuma and Mr Ryoichi Ogawa. Japan Private Equity Association will have a booth. Please come and join us. Thank you Antoine Colson for your team's great help. All best wishes from Tokyo for a successful event!

<Japan Investment Information> Japanese chipmaking device supplier Disco is set to form a subsidiary in #India as early as September for marketing and helping manufacturers set up #semiconductor fabs in the country. #FinCityTokyo https://lnkd.in/g4xiDPVR

<Japan Investment Information> Entrepreneur Taizo Son, who co-founded the Singapore-based venture capital (VC) firm, The Edgeof and his team will launch a fund to invest in AI-related startups. It will raise $130 million by the end of August from ソフトバンクグループ and major South Korean conglomerates, and will support the investee's future expansion into Asia and create a new industry using #AI. #FinCityTokyo https://lnkd.in/gscqgCYc

<Japan AI Information> Financial Services Agency, Japan (JFSA, 金融庁) will begin using AI technology in the 2024 fiscal year (July 2024 to June 2025) to verify the soundness of financial institutions that handle deposits. Using machine learning technology, small and medium-sized financial institutions will be able to closely monitor the large volume of disclosed documents and non-public information received from financial institutions. #FinCityTokyo https://lnkd.in/gUFZnPfd

<Japan Energy Information> The Japanese government will begin revising its national strategy to accelerate the timing of the realization of fusion power generation, a next-generation energy source. It will reopen the Cabinet Office's Expert Committee on Fusion Strategy on August 20 and finalize the new strategy by the end of this fiscal year. A number of fusion power generation projects are being planned overseas by governments and #startup, and the most likely proposal is to aim for a demonstration of fusion power generation in the 2030s alongside these projects. #FinCityTokyo https://lnkd.in/gsEePUg8

<Japan Investment Information> Major U.S. VC firm, Andreessen Horowitz will establish its first Asian base in Japan. Their most recently launched fund has been funded by NTT Group and others. It is to bring in Japanese companies that are active in #startup #investment as an alternative funding source to China. #FinCityTokyo https://lnkd.in/gsh9QTQE

<Why do we need Growth Capitalists in Japan?> ● A well-functioning investment chain requires enhanced roles played by both asset owners and asset managers. In the area of asset management, a new breed of asset managers called “Emerging Asset Managers” are expected to function as intermediators of capital for growth, or Growth Capitalists (GCs). An emerging manager typically refers to an independent and active asset manager who has high investment skill in generating higher returns (or alpha), but with relatively small size in terms of assets under management and a short track record. ● In Japan, as indicated in the lower left corner of the chart, it is often the case that venture capitalists (VCs) focus on short-term listing goals and only invest in companies between the founding stage and IPOs. Once they are gone the post-IPO companies are left unattended with small market capitalization, deprived of growth opportunities after the IPOs, even with potential. Growth Capitalists, as circled in the red dotted lines, are expected to fill the gap by providing support for companies after their IPOs to make sure they remain on a sustained growth path. Alternatively, they could privatize the listed companies again to revert to a missed growth trajectory. ● Against this background, the government decided to promote new entry by domestic and foreign emerging asset managers through the so-called “Emerging Manager Program (EMP)”, which typically requires large asset owners and institutional investors to allocate a portion of their funds to emerging asset managers.  　　　　　　　　　　　　　　　↓ Public-private initiatives to support new entrants of emerging asset managers (Japanese EMP) by Financial Services Agency, Japan (JFSA, 金融庁) : https://lnkd.in/g9Nfeead #GrowthCapitalist #国際金融都市

〈Japan Investment Information〉 EQT Group, a major European investment fund, announced on April 14 that it will launch a new fund for Asian investments with a target of $12.5 billion. It aims to raise over $1 billion more than its current Asian fund. The new fund will also focus on the Japanese market as a priority investment destination within Asia. #FinCityTokyo #investment https://lnkd.in/gVBsRuXj

〈Japan Supplychain Information〉 Fifteen Japanese companies, including ISUZU MOTORS and Sojitz Corporation, will create a supply chain network in ASEAN. Thirteen large-scale demonstration projects will be launched in growth fields such as semiconductors and next-generation fuels, and will be supported by the Japanese government. The total project scale is expected to be around 100 billion yen. The Ministry of Economy, Trade and Industry (METI) will soon announce the 13 projects for which Japanese companies will be supported in developing technologies and investing in equipment that will give them an edge in the ASEAN region. #FinCityTokyo #supplychain https://lnkd.in/gHyBqU4W

A growing number of solutions are now available on the JPXjoIN mall website. Launched in early July, JPXjoIN mall is a membership-based information product introduction service provided by the Tokyo Stock Exchange (“#TSE"). #Japanese #equity #investors and securities companies and vendors looking to expand their Japan stock business can find a wealth of innovative information solutions to suit their particular needs on JPXjoIN mall. As of today, around 20 different solutions provided by 11 partners are available on JPXjoIN mall, and these numbers are increasing daily. The number of users also continues to grow, with more than 30 companies currently registered for the site. The product lineup is also expanding, and currently includes Japanese news and stock research reports, information and trading tools for capturing market trends and alternative data. Some partner vendors also offer free or limited-time discount plans for JPXjoIN mall users. If you are interested, please register at the URL below and check the details. https://lnkd.in/g653B-BD