Mark Chiba of The Longreach Group
Group Chairman and Partner of The Longreach Group Mark Chiba says that, despite past market performance that have prompted “disappointments,” Japan still holds a great number of opportunities for LPs, to the point that Chiba labels the market as “an overlooked opportunity.”
Speaking to AVCJ, Chiba explains that Japan should still have a place in LPs' investment plans, and that understanding how Japan is integrated with other markets' strategies is the key to navigating these investments. "I think that the LPs that are thoughtful and realize that private equity is about staying away from crowds and fads, and staying very focused on absolute return and on managers who can really generate alpha for you actually see Japan as a really overlooked opportunity."
Chiba's advice comes off the back of his firm's acquisition of Sanyo Electric Logistics Co., Ltd., a Japanese logistics company owned by Sanyo Electric, the electronics manufacturer acquired by Panasonic in November 2009.
Chiba additionally notes that Asia's volatile regulatory environment is one main factor poised to hinder the private equity industry's growth. "If governments end up going more protectionist under persistent high unemployment or if there are trade disputes or if there is an easing up or a neglect of progress toward economic integration, that's probably the biggest issue we face," he says.
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