Bain Capital Is ‘Bullish’ on Japan, Sees Management Buyout Trend

(Bloomberg) -- Bain Capital is “definitely bullish on Japan” as one of its investment destinations, said Managing Director David Gross-Loh, noting that the country has handled the coronavirus pandemic “pretty well.”

• Bain is focused on longer-term opportunities in Japan, where health care for example will likely take on greater importance as the population ages, he said in an recent phone interview
• If Covid-19 pushes Japan’s economy into a prolonged downturn, that could put pressure on companies and fuel discussions on whether they should take themselves private to focus on restructuring
• NOTE: Bain recently bought Showa Aircraft Industry and is investing in medical and nursing services provider Nichiigakkan as part of a management buyout
• There’s already a “general trend in support” of MBOs in Japan and crises like the outbreak could accelerate the process because businesses are more likely to reassess their operations
• Banks in the country are very supportive of private equity funds

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