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Japan Investment Corp has taken over the role of the Innovation
Network Corporation of Japan (INCJ), one of the country's
state-backed funds that was set up to accelerate growth of
domestic companies.
Instead of investing directly in companies, JIC will create
funds with private equity firms, sovereign wealth funds and
institutional investors, to invest in corporations.
Large foreign equity funds should be able to benefit by teaming
up with JIC, said Masaaki Tanaka, JIC's chief executive officer
in an interview with Reuters.
"The biggest difference between us and foreign private equity
firms such as KKR, Blackstone and Bain Capital, is that we are a
long-term investor," he said.
"There is a prejudice (in Japan) against foreign private equity
firms but if they team up with us, they can overcome that
obstacle," he added.
If JIC makes co-investments with private equity funds and the
funds want make an exit earlier, JIC would be willing to buy
their stakes, Tanaka said.
Smaller Japanese private equity firms can also benefit by
teaming up with JIC as they could target larger deals, he said.
Besides a private equity fund, JIC also plans to set up an
engagement fund, which would own around 5 percent stakes in
companies. JIC plans to make proposals to improve corporate
management, a latest sign of the country's commitment to shake
up corporate Japan.
In addition, JIC plans to set up venture capital fund as well as
a fund that targets overseas firms.
($1 = 112.4500 yen)
(Reporting by Junko Fujita; editing by David Evans)
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