Japan's private equity market will see a "steady flow" of transactions even as rising funding costs cripple deals elsewhere, said the cofounder of the nation's largest buyout fund.
"We've heard about the subprime effect in the United States and that leveraged buyouts have come to a halt," Richard Folsom of Advantage Partners LLC said in a recent interview. "We're seeing a steady flow of deals" in Japan.
Advantage Partners, with ¥340 billion in assets, completed the acquisition of Tokyo Star Bank this month and is looking for targets in health-care and manufacturing, Folsom said. The fund is sticking to its plan to invest in four companies a year, he said.