Hillhouse Investment has recruited Tomohiro Kikuta, a former partner at Bain Capital, to lead its expansion in Japan amid a surge in deal-making activities, according to a report by Reuters citing unnamed sources familiar with the matter.
Kikuta is set to join Hillhouse as head of its Japan operations in the coming months with his primary responsibility being to assemble a local team of approximately 20 members through a mix of new hires and internal relocations, said one of the sources.
Currently operating from a shared office in Tokyo, Hillhouse plans to establish its own office space by mid-2024, according to the sources. Neither Hillhouse, Bain Capital, nor Kikuta commented on the development.
Founded in 2005 by Zhang Lei with initial backing from Yale University’s endowment fund, Hillhouse is known for early investments in Chinese tech giants like Tencent, JD.com, and Baidu. While historically focused on hedge funds and private equity, the firm has recently diversified into real estate and private credit.
The decision to expand in Japan aligns with a sharp rise in private equity opportunities fuelled by corporate governance reforms and a depreciating yen, which have made acquisitions in Japan increasingly attractive.
Japan emerged as the largest private equity market in Asia-Pacific in 2023, accounting for 30% of the region’s total deal value, according to Bain & Co, driven largely by take-private deals. As a result, global investment firms like Carlyle and Warburg Pincus are also bolstering their presence in Japan, with FountainVest Partners entering the market earlier this year.
