Investment funds are emerging as providers of corporate financing. Funds with lending capacity of up to ¥100 billion are being established one after another, while demand for financing is rising against a backdrop of insufficient bank lending capacity.
Investment funds are becoming new providers of financing to companies, with funds handling corporate loans on the scale of ¥100 billion being established one after another. As banks' lending capacity becomes limited, companies are expanding their financing options.
Nikkei reports that demand for financing is increasing against a backdrop of growing M&A activity, and also points out that major banks account for the bulk of lending. As of the end of September 2023, total corporate loans, including those provided by major banks, had reached ¥6.6 trillion.
Changes in the corporate financing environment are seen as a factor encouraging industrial reorganization, and the expansion of new lending channels through funds could affect future developments.