Tom Connolly
Chief Investment Officer and Head of the Global Private Credit Group in Goldman Sachs’ Merchant Banking Division, Goldman Sachs Group
Connecting Japanese capital to global private debt opportunities
The inaugural PDI Tokyo Forum on 5 November 2019 will bring together more than 200 of Japan’s most active outbound investors and global GPs in the private credit space to analyse the latest trends in the market, discover new opportunities globally and build valuable connections for business growth.
Japan’s institutional investors are expanding their alternative investments to generate yield amid the low interest rate environment and, utilising Private Debt Investor’s position as the most trusted global debt-specialised publication, this Forum is your gateway to connect with Japan’s largest LPs and exchange insights with the most influential global GPs.
Key conversation topics at the conference:
- Japanese LPs’ risk appetite shift and what they are looking for in global fund managers?
- The debt landscape across developed markets: Deals, deployment and returns
- The rise of real asset debt among Asian investors
- Exchange ideas with giant GPs: How to stay competitive?
- Case studies on mezzanine financing and direct lending
Who is it for?
Investors
As the ONLY conference specialised in private debt in Japan, the Forum is your gateway to meet with the most influential global GPs, exchange ideas on the latest market trends with peers and unlock the most sought-after investment opportunities in 2019 and beyond.
Fund managers
With a GP:LP raito of 2:3, the Forum is your perfect opportunity to connect with Japan’s behemoth institutional investors, learn about their fund manager selection methods, build connections and turbocharge your fundraising.
Service providers
Demonstrate your skills and services packages to more than 200 senior private debt professionals globally and grow your business in the private credit and lending space. This is a conference you cannot afford to miss.
What our delegates say
Qianru Yang
Keppel Capital
“Well thought through and relevant content. Provides good insight into how LPs think about this asset class.”
Ryoko Katayama
Topaz Capital
“Very well organized and structured. Great access to the assets’ leading players and insights.”
Harald Eggerstedt
Towers Watson
“PDI events bring private debt investment and structuring expertise together like no other conference I have attended.”
Confirmed attendees:
2019 Speakers
Seize the growth opportunity
Following the news of Pension Fund Association for Local Government Officials’ (Chikyoren) debut in private corporate debt investment and its existing exposure to private lending, as well as GPIF’s recent $73.4 million commitment for direct co-investment along with IFC and Development Bank of Japan, Japan’s institutional investors are expanding their alternative investments to generate yield amid the low interest rate environment. There has never been a better time to connect with the Japanese investors and grow your business in 2019 and beyond.
Access global market intelligence
Utilising Private Debt Investor’s position as the most prestigious publication specialised in private debt, the Forum will provide you the most exclusive analysis together with unrivalled insights from global senior private debt professionals.
Based on the latest PDI 50 research the private debt market is stable, with future funds targeting more region-specific opportunities.
Join the leaders in private debt
200+
senior private debt professionals
80+
LPs
2:3
GP:LP ratio
Supercharge fundraising by connecting with the most influential Korean LPs
Expand connections. Unlock the opportunities.
Latest survey completed by Private Debt Investor research team shows that private debts LPs are looking to increase the number of GP relationships.
Past attendees in Japan & Korea series events:
Shape the future of the private debt by joining the most elite community in Japan
Join more than 200 Private debt senior decision-makers around the world at the PDI Tokyo Forum and seize the opportunity to share the future of the private debt while building invaluable connections with institutional investors and fund managers.
1 Ticket, 2 Forums, 200+ LPs, Unlimited Opportunities
Join both the Tokyo and Seoul Forums in the same week to maximise your time in Asia
Invigorate your fundraising strategy by spending a week with Asia’s largest and most active outbound institutional investors in Japan and Korea by purchasing a single ticket. Connect with more than 200 Japanese and Korean LPs across two industry-leading events in Tokyo (5 November) and Seoul (7 November).
If you are fundraising in Asia, do not miss the chance to meet the regions’ largest LPs this November!
Key features of the Forums:
- More than 200 LPs in attendance across the week at a GP:LP ratio of 2:3
- 14 hours+ of premium networking across the week with institutional investors, fund managers, advisors, and strategic partners
- Unparalleled content, featuring exclusive Japanese and Korean LP insight on the private credit industry
- New and improved networking app to connect with key targets prior to event day
Why attend both forums?
Supercharge your fundraising
Secure your next capital allocation by connecting with senior decision-makers from Japanese and Korean LPs.
Knowledge-sharing with opinion leaders
Strengthen your investment strategy by sharing ideas with the most influential debt investment community that gathers at all PDI global events.
Maximise your time and money
Take advantage of your time out of the office to gain the greatest business results possible by connecting with both of Asia’s major outbound LP communities in the space of one week.
Past attendees to Japan & Korea series events:
Why should I attend
Why are the 2019 Forums are a must-attend series? Find out the confirmed attendee list, speaker line-up and agenda highlights in the digital brochure.
Which package is for me?
Check out package options available and then secure your place today to maximise savings.
PDI Tokyo & Seoul Forums
full access
Boost your networking opportunities, and gain the best savings, by attending both the Seoul & Tokyo Forums on 5th and 7th November.
Includes:
- Access to 200+ LPs from Japan and Korea
- Access to two days of premium content
- 14+ hours networking with global private debt’s most influential community
- Access to both luncheon and cocktail networking receptions in Japan and Korea
- Dedicated networking time for intimate knowledge-sharing with like-minded individuals
- Contact PDI Tokyo and Seoul Forum attendees before, during and after the event utilising our new and improved event app
- Save up to US$1,339 before 2 October 2019
PDI Tokyo Forum only
The inaugural Tokyo Forum on 5 November is a one-of-a-kind event in Japan focused on global private credit markets and outbound capital flows.
Includes:
- Connect with 100+ Japanese LPs
- Access to one day of premium content at the ONLY dedicated private credit event in Japan
- 7+ hours networking
- Access to luncheon and end of day cocktail reception
- Contact Tokyo Forum attendees before, during and after the event utilising our new and improved event app
- Save up to US$400 before 2 October 2019
PDI Seoul Forum only
The second annual PDI Seoul Forum on 7 November is Korea’s only conference exclusively focused on global debt strategies and fundraising opportunities.
Includes:
- Connect with 100+ Korean LPs
- Access to one day of premium content at the ONLY dedicated private debt conference in Korea
- 7+ hours of networking
- Access to end of day cocktail reception
- Contact Seoul Forum attendees before, during and after the event utilising our new and improved event app
- Save up to US$400 before 2 October 2019
Preliminary Agenda
For any enquiries, please contact Niann Lai at niann.l@peimedia.com.
View agenda page
Agenda
Preliminary Agenda - Tuesday 5th
Full day
08:00 - 08:45
Registration & networking
08:45 - 09:00
PEI welcome and opening remarks
Helen Sanders-de Lieto
09:00 - 09:20
Keynote: The value of scale and differentiated sourcing capabilities in private credit
Michael Patterson
- Non-sponsor lending: not just sourcing, it’s about execution
- An awash in debt capital – Utilizing scale as a competitive advantage
- Opportunities to find alpha returns persist at the larger end of the lending market
Michael Patterson
Governing Partner and Global Head of Direct Lending, HPS Investment Partners
Read bio
09:20 - 10:00
Opening panel: Global debt under the microscope
Andrew Hedlund,
Art Penn,
Robert Radway ,
Randy Schwimmer
- The role of private debt within the wider portfolio
- Addressing the impact of unique global issues in debt: The tighter terms and limited deal sourcing opportunities – how do they affect the return expectations
- Lessons learned from the global financial crisis
- Where does the real asset debt sit for investors?
Randy Schwimmer
Senior Managing Director, Co-Head of Senior Lending, Churchill Asset Management
Read bio
10:00 - 10:20
Keynote: Getting your debt strategy right
Tom Connolly
- Evolution of the private debt market and diversity of fund structures
- What LPs should look for when finding a fund manager
- Case study: Investing in complex debt structuring deals: The perils and the potential of the unitranche
Tom Connolly
Chief Investment Officer and Head of the Global Private Credit Group in Goldman Sachs’ Merchant Banking Division, Goldman Sachs Group
Read bio
10:20 - 10:50
Networking break
10:50 - 11:30
Panel: In focus: Mid-market direct lending in US
Greg Racz,
Timothy J. Conway,
Lee Landrum,
Sandra Lee Montgomery,
Jessica Lee
- What are the drivers for investing in the mid-market? How does the upper and lower mid-market compare for deals, visibility, terms and returns?
- What are the trade-offs between syndicated lending and private market lending in the mid-market and SME space?
- To what extent to mid-market lending dynamics align with the overall private debt cycle?
- Is the direct lending market over-saturated and how can managers continue to differentiate themselves from the competition?
11:30 - 12:10
Panel: In focus: Mid-market direct lending in Europe
Deborah Ogawa,
Symon Drake-Brockman,
Paul Johnson,
Jean-Baptiste Feat,
Mark Brenke
- Opportunities and potential hurdles for European investments – Markets divide, jurisdictions, Brexit, bank vs alternative lenders
- Does the upper and lower mid-market compare for deals, visibility, terms and returns?
- What are the trade-offs between syndicated lending and private market lending in the mid-market and SME space?
- Future prospect of European direct lending market – Growth, LPs, subdivision of the asset class, market unification
12:10 - 12:50
Panel: Effective ways to manage, add value and extract maximum returns from distressed debt and special situations
David Forbes-Nixon ,
Jaime Prieto,
Hemant Daga,
Jingjing Bai
- How are Asian or European countries dealing with their NPL issues and performing loans?
- Distressed, special situations and NPL exit strategies that meet return expectations: What are the available options?
- Where are we in the economic cycle and how does credit special situations change in response to the wider economic situation?
12:50 - 14:10
Networking lunch (Sponsored by HPS)
14:10 - 14:30
European direct lending: How to address investors’ concern for potential downside risks
Nicole Gates
- Too much dry powder – is market over-crowded?
- Ever loosening lending terms – Do direct lenders maintain the terms to protect LPs?
- Credit risk around the corner – Are lenders prepared to perform workouts in possible downturns?
14:30 - 15:10
Panel: Senior debt vs opportunistic credit strategies
Adam Ruggiero,
David Ross,
Adalla Kim,
Ryan Chung,
Hamish Grant
- What explains the attractiveness of senior debt at present? What is the workout or restructuring process for senior debt lenders?
- What are other alternative options?
- What role do the strategies play in an investor’s portfolio in the current credit cycle?
- How to diligence managers and evaluate deal sourcing and underwriting capabilities
15:10 - 15:40
Networking break
15:40 - 16:10
Panel: The dos & don’ts of fundraising in Japan
Yasuyuki Tomita,
Hisanori Takata,
Reijiro Samura,
Yoshikoto Tamura,
Jiro Shimpo
- Opportunities in private debt: How does Japan compare with Asia and the rest of the world?
- What is the role of asset management and securities companies in Japan and how do they work?
- The relationship between private debt and private equity – which sector is more attractive in Japan?
16:10 - 17:00
Closing panel: Japanese LP perspectives on private debt
Akihiro Endo,
Kazuo Nishimura,
Takeshi Ito,
Yoshifumi Kida,
Daichi Suzuki,
Yoshi Kiguchi
- What are the appealing strategies and other priorities for investors and what are the risk appetite and geographic focus appealing to Japanese investors?
- How do recent global trends encourage Japanese investors to private debt?
- How to pick your fund manager: Who will manage capital the best – single strategy fund manager vs multi-asset fund manager vs multi-strategy fund manager?
Takeshi Ito
Senior Investment Officer & Chief Operation Officer, AISIN Employees' Pension Fund
Read bio
17:00 - 18:00
End of forum and Cocktail (Sponsored by MGG)
Confirmed Speakers
Interested in speaking at the Forum? Please contact Ms Niann Lai at niann.l@peimedia.com.
Tom Connolly
Chief Investment Officer and Head of the Global Private Credit Group in Goldman Sachs’ Merchant Banking Division, Goldman Sachs Group
Reijiro Samura
President and Chief Executive Officer, Chief Investment Officer, Alternative Investment Capital
Yasuyuki Tomita
Executive Director, Head of Private Equity Investments, Japan Science and Technology Agency (JST)
See what’s new in 2020 edition, visit the PDI Tokyo Forum 2020 website now.
Pre-Event Resources
Partner with the PDI Tokyo Forum
The PDI Tokyo Forum 2019 will offer a unique opportunity for organisations to raise their profile among 200+ senior private debt decision-makers across the world.
For exclusive sponsorship package for the PDI Tokyo Forum 2019, please contact sponsorship team at asiasponsorship@peimedia.com, call +852 2153 3846.
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Japan’s Chikyoren to hire private debt managers for the first time
The $217bn public pension fund is adding private corporate debt to its portfolio as part of a five percent allocation to global alternatives.
By Adalla Kim | 20 July 2018
Japan’s Pension Fund Association for Local Government Officials, known locally as Chikyoren, has issued a Request for Proposals (RFP) as it searches for private debt, infrastructure, real estate, and private equity investment managers in Japan and overseas, according to its latest announcement. The RFP includes the first mandate dedicated to private debt investments.
Chikyoren is looking to invest in both domestic and offshore private debt via asset managers. Qualifying managers should have assets under management of over 100 billion yen ($885 million; €762 million) as of end-March, including the amount managed via trust accounts, the announcement states.
A senior investment officer overseeing the hiring process told PDI that Chikyoren is looking for private corporate debt opportunities both in the US and Europe.
Its prospective total commitment to alternatives will be made from one of two accounts being managed by the association. “The size of this capital pool accounts for five percent of our total assets under management,” the officer noted.
Its current exposure to alternatives stands at 0.4 percent, while the maximum allocation for alternatives is set at five percent of total assets – representing about 1.2 trillion yen ($10.7 billion; €9.1 billion) of its 23 trillion yen in total assets under management, as of end-March (the fiscal year 2017 ends on 27 March).
Further details regarding selection process and return expectations were not disclosed. There is no set deadline for submission of proposals nor a pre-determined commitment size for each mandate.
Chikyoren’s manager registration system operates on a rolling basis, similar to that of its larger peer, the Government Pension Investment Fund (GPIF) of Japan, which accepts proposals all year round and makes investment decisions accordingly.
It has gained exposure to illiquid credit via infrastructure debt and real estate debt investments.
Between June 2016 and March 2018, Chikyoren invested a total of 18.3 billion yen through four overseas infrastructure mandates, according to its latest annual report available only in Japanese.
These include a 3.4 billion yen commitment to Mitsubishi UFJ Trust Bank targeting European regulated assets, which delivered an annualised return of five percent in the fiscal year 2017.
A 3.5 billion yen mandate with JPMorgan Asset Management to invest in core infrastructure in OECD countries delivered an annualised return of 10.3 percent, while a 1.5 billion yen investment with Tokio Marine Asset Management targeting Australian assets, had generated a negative annualised return of 1.42 percent between July 2017 and March 2018.
The largest mandate of 9.9 billion yen landed with Mizuho Global Alternative Investments to invest in infrastructure debt globally. That had delivered a return of 0.77 percent during the last fiscal year.
The public pension has also awarded five real estate mandates for overseas and domestic investments and two domestic private equity mandates over the past two years.
Chikyoren manages the second largest pension pool in Japan after after the $1.4 trillion sized GPIF. Its assets come from pension reserves for members of local government organisations. It is the first among public pensions to issue an RFP for alternative investments in a bid to diversify its portfolio from a long-term investment perspective.
Why more Japanese investors are demanding real asset loans
These institutions prefer floating rate-based loans to mitigate foreign currency hedging risks.
By Adalla Kim | 3 August 2018
More Japanese institutions are part of the alternative credit landscape this year.
Following Pension Fund Association for Local Government Officials’ announcement last month regarding its planned debut in private corporate debt investment, the world’s largest pension fund, Government Pension Investment Fund (GPIF), confirmed to PDI this week that it has existing exposure to alternative lending via a trust account.
GPIF’s commitment, sized at ¥8.2 billion ($73.4 million; €63.4 million), is for a direct co-investment along with International Finance Corporation and Development Bank of Japan, according to a spokesperson from the pension administrator.
It classifies this investment as an international equity allocation given its asset mix criteria as the commitment is held in a trust. A senior officer from IFC Asset Management Company declined to disclose details on investment targets and the name of the vehicle.
Regardless of which classification investors choose to record their investments, one notable theme seen among Japanese institutions that PDI spoke with is that they prefer lending against real asset collateral when making alternative credit investments.
“We are interested in real asset loans such as project-based debt financing,” said a senior offshore alternative investment officer from a Japanese institution who asked not to be named. He added that to achieve higher returns from private credit markets, his organization had chosen real estate debt and infra debt strategies.
Another example is Japan Post Bank, one of the two units of Japan Post Holdings, a holding company overseeing postal, banking, and insurance businesses. Its current alternative credit investment exposure includes mezzanine debt, distressed debt, infrastructure debt, and real estate debt fund commitments.
PDI understands that Japan Post Bank prefers non-recourse loans for real asset debt strategies as the bank seeks low correlation with systematic risk and underwriting based on the projected cash flow from specific transactions only.
Japan Post Bank also disclosed its existing exposure to senior secured direct lending funds, according to its latest mid-term management plan published on 15 May. It revealed to Private Equity International, a sister publication of Private Debt Investor, in March that it will focus on the US and European direct lending markets to seek a meaningful liquidity premium in exchange for the risk.
Although detailed figures were not disclosed, the bank plans to ramp up its alternative investments, targeting four percent of its total investment portfolio by end-March 2021.
Japan Post Bank’s alternative exposure is sized at 8.5 trillion yen ($76.1 billion; €65.5 billion) or one percent of its total portfolio assets as of end-March, according to the material.
INFRASTRUCTURE DEBT
Infrastructure debt is an asset class that has been attracting Japanese investors for the last five years.
Most recently, Dai-ichi Life Insurance Company, known as one of the most active Japanese institutions in alternative investments among its peer group, disclosed its anchor commitment of £70 million (¥10 billion; $92.4 million) to M&G Infrastructure Loan Fund.
The loan fund is a European infrastructure debt fund launched in March, targeting project finance loans and bonds for public-private partnerships (PPP) and infrastructure projects in Europe.
Jack Wang, a fund manager at Mizuho Global Alternative Investment, a Tokyo-based investment arm of Japan’s Mizuho Financial Group told PDI in April that it is possible for investment managers to mitigate cyclicality of the global credit market at a degree by investing in assets with long-term contracts with strong counter parties.
A deputy general manager in the offshore alternative investment team from a Japanese insurance firm told PDI that the insurer has committed to infrastructure debt, mezzanine debt, and direct lending strategies. He added that it has been expanding its investment in alternative investments to generate yield amid the low interest rate environment.
However, there are at least two aspects of infrastructure debt investment that investors should be especially careful about. “We should assess how vulnerable the project itself would be and what the structure of these projects is like in the initial stages,” Wang added.
According to a director of a Japanese institution who oversees offshore alternative investments, the biggest concern he has when looking at investment opportunities is the cost of hedging the Japanese yen against foreign currencies, adding that, whether or not general partners can provide a forex hedging solution is an important consideration.
Two industry practitioners told PDI that now, investors have to discount as much as 200 or 250 basis points on foreign currency exchange risk against the US dollar. “That is a significant effect on our investment returns,” one source added.
Given this, Japanese investors are watching out for US interest rate changes given that the foreign currency hedging cost results from a gap in the interest rates between the two countries. This has implications for the higher return expectations from overseas investment among Japanese institutions.
“Almost all Japanese investors have exposure [to these assets] in [Japanese] yen. They prefer a floating rate-based return structure as this feature can naturally hedge some of the costs borne by currency hedging,” Wang said.
Two Forums, Unlimited Opportunities
Join the Seoul Forum and maximise your time in Asia
The second PDI Seoul Forum returns on 7 November 2019 with more than 100+ influential Korean outbound investors and fund managers in ONE room. If fundraising is your core business, do not miss the chance to meet both Japanese and Korean LPs in the same week.
Korean Investors that attended last year
Learn more about their strategy
KIC’s chief risk officer and executive vice-president, Seung Je Hong, told PDI: “I think the alternative investment industry is not standardised enough, and therefore it is perceived to be risky when making investment decisions by comparing return profiles with a GP’s peer group or their track records.”
What's the key in infrastructure debt
Check out the key takeaways from Infrastructure Investor Seoul Summit and find out the current state of Korean investors
