Huaping Investment CEO: Japan has “real and very attractive opportunities” and will seize the opportunities for spin-off and privatization

The Zhitong Finance App learned that Jeffrey Perlman, CEO of Warburg Pincus LLC (Warburg Pincus LLC), said that Japan is undergoing structural changes that make it more friendly and attractive to global private equity firms.

“Today, the Japanese market no longer sees private equity as a one-time competitor, but rather as a partner,” Perlman said in an interview on Monday. “This is where our value creation investment strategy can work to help companies grow.”

“In our opinion, this is a real and very attractive opportunity,” he added.

Perlman said that although the large trading sector may seem crowded, Huaping Investment is targeting the less competitive middle market. The company launched a 190 billion yen ($1.2 billion) tender offer for Japanese student housing operator JSB Co., Ltd. earlier this year, which will be its first privatization deal in Japan.

Japan has thousands of listed companies — many of which are conglomerates with non-core business divisions suitable for streamlining or spin-off — providing private equity investors with rich targets for mergers and acquisitions.

“Especially in the middle market, valuations are still attractive,” he said. “We are also focusing on investment opportunities brought about by asset spin-offs.”

In addition, Perlman said that the investment value of local Indian companies is still outstanding, and Huaping Investment will continue to increase capital investment in the region.