Although China is currently the leader in the Asian fund market, Japan is piquing the interest of large US private equity firms due to its seasoned business climate, well-developed legal system and successful capital markets system.
"There's no question that Japan is a better, more mature buyout market than China. Chinese policy presently inhibits such transactions," says David Patrick Eich, a senior private equity partner in Kirkland & Ellis' Hong Kong office. "Despite remaining impediments in Japan, on the other hand, the regulatory regime has evolved favorably, there are many attractive companies and lenders with strong balance sheets and cultural constraints generally have eased."
This article appeared in its entirety in the November 26, 2007 edition of Investment Dealers Digest.