Japanese government launches 'Cool Japan Fund'

According to a release, the government will initially contribute JPY30 billion to the fund, making an additional investment of up to JPY50 billion by end of the 2014 financial year. Private sector investors will contribute JPY7.5 billion, potentially rising to JPY10 billion.

Managed by the Japan's Ministry of Trade, Economy and Industry (METI), the fund will target a wide range of sectors including content, clothing, food, services, advanced technologies, leisure, education and tourism. It will typically invest in small to medium-sized enterprises (SMEs).

The fund's stated aims include facilitating the overseas expansion of Japanese content, helping companies expand into overseas markets and boosting the number foreign tourists visiting the country.

Koichiro Yoshizaki, a former director with The Carlyle Group and current founder of Growth Initiative Inc, will serve as CIO. Nobuyaki Ota, managing executive officer of Matsuya Department Stores and former CEO of fashion label Issey Miyake will be CEO.

The fund will have a life span of 20 years and will seek to co-invest alongside other private sectors investors including other funds, finance institutions and companies.

The initiative is said to be driven by a number of perceived bottlenecks which have prevented the country from fully capitalizing on the its cultural appeal overseas, including a lack of communication with the overseas market, a lack international business experience among SMEs and a lack of availability of risk capital for these SMEs.

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• Topics
• North Asia
• Expansion
• Japan
• SME
• Outbound investment