KKR appoints turnaround specialist as Japan CEO

This is the third addition the private equity firm has made to its Japan team in six weeks, following the appointment of Hiro Shimizu and Sakae Suzuki as directors in the capital markets and Capstone divisions, respectively. The moves suggest that KKR, which will imminently announce a final close of $6 billion on its second pan-Asia fund, plans to be more active in Japan than in recent years.

Prior to joining turnaround specialist AlixPartners, where he was managing director and head of the Asia financial services practice, Hirano was CEO of merchant banking group Nikko Cordial - now known as SMBC Nikko Securities - and chairman of Nikko Principal Investments.

At AlixPartners, Hirano also advised on Sumitomo Trust's acquisition of Nikko Asset Management, where he previously served as a director, from Citigroup and the subsequent purchase of DBS' Singapore asset management subsidiary by Nikko Asset Management.

Joe Bae, managing partner of KKR Asia, described the appointment as an important step forward as the firm grows its PE franchise and broadens its focus to other areas of asset management and capital markets. "Hiro has a unique combination of private equity investing and operational consulting with a 30-year track record of helping Japanese companies revitalize their businesses and expand globally to achieve their full potential," Bae said.

KKR recently agreed to sell Intelligence Holdings, currently its only Japan portfolio company, to Temp Holdings for JPY68 billion ($721 million), including debt. The PE firm's equity exit is worth JPY51 billion, putting it on course for a more than 5x money multiple on an investment made in July 2010.

In terms of KKR's investment agenda, restructuring struggling Japanese corporates appears to feature strongly, which would be a good fit for Hirano's turnaround skills. The PE firm submitted a JPY100 billion bid for Renesas Electronics Corp. last year but was thwarted when government backed-Innovation Network Corporation of Japan (INCJ) assembled a domestic consortium that made a higher offer.

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• Topics
• People
• Restructuring
• North Asia
• Buyout
• KKR
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• Japan