Neuberger Berman East Asia has partnered with Sumitomo Mitsui Banking Corporation (SMBC) on a “first of its kind” joint venture to establish and manage Japan-focused private debt funds.
The funds established through the partnership will primarily invest in leveraged buyout (LBO) senior loans, aiming to broaden access to these assets for both Japanese and overseas investors, according to the firms.
Both Neuberger and SMBC said the joint venture marks the first initiative of its kind in Japan between a domestic bank and an independent global investment manager.
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“As Japan’s buyout market expands, a more diversified lender base will deepen the market and strengthen the stability of capital provision,” said Ryo Ohira, managing director and head of Neuberger Berman East Asia. “Through our partnership with SMBC, we aim to deliver capital that balances swift decision-making with prudent risk management – ultimately contributing to the competitiveness and vitality of the Japanese economy.”
Under the partnership, Neuberger brings its private markets track record in the North American direct lending market, while SMBC contributes its longstanding role in Japanese corporate finance and experience as an LBO lender in Japan.
Launched in 2013, Neuberger’s private debt business manages $25bn (£18.4bn) across evergreen and closed-end funds and since inception has invested more than $29bn in over 250 companies.
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“Leveraging our fund-of-funds platform and the best practices in private debt we have developed in the US, we will deliver an investment approach tailored to Japanese market standards,” said Yasuyuki Fujita, managing director and head of Japan private debt investment of Neuberger Berman.
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