The Japan co-head of U.S. investment fund The Carlyle Group said the firm plans to advance the restructuring of Japan's manufacturing sector through acquisitions. The aim is to integrate the country's manufacturers and strengthen their competitiveness in global markets.
Junpei Ogura (小倉淳平), Japan co-head of U.S. investment fund The Carlyle Group, said in an interview with Jiji Press that the firm aims to restructure Japan's manufacturing sector through acquisitions. He said he wants to correct a situation in which companies remain only the world's second- or third-largest players after dividing market share among themselves in Japan.
In March this year, the firm announced that it would acquire OMRON's electronic components business, the company's original core business, and Ogura expressed his willingness to pursue industry restructuring through additional acquisitions. He said the aim was to use investment as a catalyst to help companies grow larger.
Carlyle is also focusing on investments in emerging companies such as Uzabase, which operates the NewsPicks news site, and Kaonavi, a human resources management system provider. It aims to improve their earning power by taking them private, with a relisting in view.
One issue facing Japan's emerging companies is so-called small-scale listings, in which companies continue to have low market capitalizations and lackluster share prices after listing. The Tokyo Stock Exchange plans to tighten the listing maintenance criteria for its Growth Market. Ogura suggested that a trend could emerge in which companies partner with investment funds to expand their business scale before going public, avoiding a situation in which they face pressure for shareholder returns after listing and cannot make growth investments.