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Asia & Australasia: February 2003

Merrill backs new Japan fund, 3i pulls back from Japan and GMO enters into Asian market…

3i pulls back from Japan, citing a lack of deal flow
UK-based private equity firm 3i has decided to close its Tokyo office. The firm cited lack of management buy-out opportunities as a factor in the decision. Few companies are prepared to spin off non-core businesses, according to Mark Thornton, head of 3i's operations in Tokyo. ‘We thought the restructuring of the Japanese economy would give rise to a large number of MBOs, but the reality is that we've only been able to complete one since we set up in 1999,' he admitted.
Financial Times 17.2.03

Fund house GMO sets up in Asia
Grantham, Mayo, Van Otterloo & Co, a Boston-based investment firm, has opened operations in Singapore, its first physical foray into the Asian market. The firm does, however, have an office established in Sydney and has managed Japanese securities. The timing of its entry into Asia comes on the back of successful results over the last couple of years.
FinanceAsia 28.2.03

Merrill backs new Japan fund
Merrill Lynch has acquired a 25 per cent stake in a private equity firm formed by the Mizuho financial group. The firm, Basic Capital Management, was established to make leveraged investments in distressed companies and plans to realise its gains through trade sales or initial public offerings. Other shareholders in Basic Capital Management include Mizuho Securities with 50 per cent and Orix Corp with 25 per cent.
The Deal 21.2.03