February 10, 2011

Japan PE Mission Led by the Government

The below is an excerpt from BRIGHTRUST JAPAN BUYOUT MONTHLY (Jan 2011 issue)

INVEST JAPAN MISSION LED BY THE GOVERNMENT

A group of 25 Japanese private equity funds joined a "Invest Japan" mission organized by MInistry of Economy, Trade and Industry (METI) and Japan External Trade Organization (JETRO http://www.jetro.go.jp/en/invest/). The mission visited Hong Kong in January 17-18 attending Asia Financial Forum (AFF).

METI and JETRO formed the mission of Japanese VC and BO GPs to increase overseas investors awareness and interest in Japan's private equity. A luncheon was hosted by Japan Consulate in Hong Kong and METI on 17th inviting local PE professionals and a Japan Private Equity session was held at AFF on 18th. It appeared many attendants at both events had a presumption that Japan is not keen to attract foreign capital. On the contrary, the senior officials from METI and JETRO conveyed a clear message that Japan strongly welcomes overseas investments and that the recent corporate tax cut is a very meaningful step forward. They also took time to explain the benefit of tax reform in April 2009 - now foreign investors by and large can be exempted from assuming a permanent establishment status in Japan (hence no tax filing obligation), even if they directly invest in a local limited partnership. The April 2009 tax change prompted many "undiscovered" Japanese funds to seek overseas investors.

Brightrust participated in the mission and gave a presentation at the luncheon alongside with the Government officials.

Please drop us mail@brightrust.jp a short message if you would like to receive our presentation "Japan Private Equity Market Overview", which contains updated market data.

Please also let us know if you would like more detailed information on April 2009 tax reform. We can send you an official English text.

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