Taiki 3405

Let’s not call distressed debt funds “HAGETAKA”

In Japan, foreign distressed debt funds are collectively called “HAGETAKA fund”, meaning vulture fund.

Why are they so disgraced? It seems to me that Japanese just envy those foreign funds for timely coming and making money, while we fell behind. Although those funds do not come for free lunch.

Now, Japanese government looks to invite foreign investors and asset managers, with the mission to promote as a financial hub. It should be beneficial to welcome various types of investors including distressed debt funds and create a win-win situation.

I think it would be good if Japanese fresh money, including individual investors can also invest in the distressed opportunities if there appears to be dispositions or distressed debts being offered at bargain price.

There are not many distressed debt funds in Japan and individual investors cannot easily invest in distressed opportunities. Why don’t we invite those funds into Japan and invest together with them?