KKR is broadening its footprint in Japan across private equity, credit, insurance, and real estate, driven by recent corporate governance reforms and persistent inflation, according to a report by Reuters citing the firm’s chief investment officer Henry McVey.
McVey, who also oversees global macro and asset allocation at KKR, said structural reforms in Japan provide opportunities that can offset cyclical economic challenges. He highlighted prospects across the capital structure but did not disclose specific investment targets in the country.
While acknowledging Japan’s heavy reliance on imported energy, McVey noted that rising commodity costs—exacerbated by the US-Israeli conflict with Iran and disruptions in the Strait of Hormuz—are likely to affect a broad range of resources, including oil, LNG, helium, and fertilisers.
Japan’s shift from decades of deflation to sustained inflation is opening new investment avenues. McVey pointed to real estate as a key sector, as companies increasingly divest non-core properties. Similarly, private credit is seen as a growth area, with investors moving funds out of traditional bank deposits in search of higher returns.
