KKR secures inaugural private credit appointment in Japan
KKR, a leading global alternative asset manager, is bolstering its presence in Japan's private and liquid credit market by appointing Ken Murata as a managing director. Murata, who previously worked at Goldman Sachs and UBS Group, is expected to start at KKR in September.
This move marks KKR's first dedicated private credit hire in Japan, following its announcement last year of intentions to enter the Japanese private credit market. The appointment is part of KKR's ongoing efforts in the Japanese market and builds on its Asia credit strategy, which was launched in 2019 and has seen substantial deal activity across the region.
The strategy, which focuses on direct lending, capital solutions, and collateral-backed lending, has $6 billion of capital specifically allocated for the Asia Pacific region. Since its inception, KKR's Asia credit strategy has completed 60 deals worth a total of $21 billion.
The trend among large alternative asset managers in Japan's private and liquid credit market is characterized by significant expansion and active hiring. Companies like KKR, Blue Owl Capital, Ares Management, and Apollo are establishing or strengthening their presence in Japan to capitalize on the growing demand for private credit.
The demand is driven by factors such as evolving corporate financing needs, demographic changes, and an increase in startups and restructurings. The market is also seeing an increased focus on diversified private credit strategies, including direct lending and GP/LP capital solutions, to offer tailored financing options and capitalize on the unique characteristics of the Japanese market.
These alternative managers are targeting both private and liquid credit segments, recognizing the potential for yield enhancement and portfolio diversification in an otherwise low-yield environment. The emergence of semi-liquid fund structures also signals an interest in widening investor access, including to high net worth individuals and potentially retail investors.
The actions of KKR, Blue Owl Capital, and Ares Management indicate growth and increased interest in the Japanese market. In 2023, Blue Owl Capital opened a Tokyo office, while Ares Management hired a former Sumitomo Mitsui Banking Corp executive last year to lead its Japan operations. Ares Management is also planning to open an office in Japan.
This aligns with the broader global rise in private credit assets (projected to reach trillions in AUM), where private credit is becoming a core growth area amid changing credit markets and regulatory dynamics. The maturing and increasingly competitive market landscape for alternative credit in Japan suggests a promising future for firms like KKR.
Sources: [1] "KKR Hires Ken Murata as Managing Director in Tokyo to Lead Private Credit Efforts." Bloomberg, 2023. [2] "Ares Management Hires Former Sumitomo Mitsui Banking Corp Executive to Lead Japan Operations." The Wall Street Journal, 2022. [3] "Blue Owl Capital Opens Tokyo Office." The Nikkei, 2023. [4] "Private Credit: The New Core Growth Area." Preqin, 2022. [5] "The Rise of Private Credit: Opportunities and Challenges." McKinsey & Company, 2021.
KKR's appointment of Ken Murata as a managing director signifies its commitment to investing in Japan's private credit market, demonstrating their active engagement in the business sector and furthering their finance ventures. This strategic move aligns with the growing trend among alternative asset managers, who are expanding in Japan to capitalize on the rising demand for private credit, providing opportunities for yield enhancement and portfolio diversification.
