INCJ expects more overseas deals in 2012

The public-private investment fund, which is backed by the Japanese government, told Reuters on Tuesday that it has been receiving a large number of requests for it to participate in deals abroad, and it expects this trend to continue over the coming 12 months.

"There are many asset sales given the situation in Europe, and Japanese companies, with a record amount of cash at hand, are not seeing many attractive investments at home," said CEO Kimikazu Noumi, a former executive at Norinchukin Bank.

A stronger yen is another factor which appears to be driving investors abroad.

INCJ has signed off 220 deals totaling INR355 billion ($4.6 billion) since it was launched in 2007. In May 2010, the INR1.9 trillion fund acquired United Utilities Australia, alongside Japanese trading company Mitsubishi Corp. Six months later, it backed Marubeni Corp in the buyout of Aguas Nuevas, Chile's third-largest water business, reportedly worth $498 million. Last year, it paid $680 million for a 40% stake in Swiss electronic-metering company Landis+Gyr in a joint acquisition with Toshiba.

"There are many deals in our pipeline, including those in the service sector. We may be able to announce something concrete within a few months," Noumi said.

INCJ is already growing its team to prepare for the extra workload, adding M&A lawyers and bankers to its current staff of 80.

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• Topics
• North Asia
• Buyouts
• Buyout
• Japan
• Innovation Network Corp. of Japan (INCJ)
• buyout
• Co-investment
• Australia