Private credit funds are trying to scoop up more of Japan’s ¥4.5 quadrillion ($28.7 trillion) of financial assets to lend globally, betting that inflation will prompt investors to channel more of that money into riskier overseas investments.
Ares Management, which has about $428 billion of assets under management, plans to open a Tokyo office this year, while peer Blue Owl Capital established a base in the capital last August. At least four other firms including New York-based Siguler Guff have made hires in Japan over the past year for key positions with responsibilities including selling private debt products.
The increase in interest in Japan is being fueled by signs that local investors are moving more money into higher-paying assets including alternative funds, as expectations for inflation have climbed to their highest in decades. That shift is getting a boost from government measures that include expanded tax breaks for individual investors and efforts by authorities to attract more asset managers to Japan.