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