KKR’s Henry McVey shares thoughts from his recent Japan and says the key takeaway is that Japan remains one of the more underappreciated opportunities for active ownership, particularly as higher nominal GDP and structural reform begin to reshape return profiles. While higher commodity prices are a near-term headwind, the macro backdrop in Japan is changing in ways that matter for long-term investors
Thoughts From the Road: Japan
KKR
Henry McVey
Research
16 Pages
Key Takeaways
GDP Growth: The government is embedding a strategy to run the economy at a higher level of nominal GDP. In doing so, it hopes to increase capital expenditures in strategic sectors to drive greater productivity.
Productivity: The productivity gains above are not optional. They are required to offset challenging demographics, support higher real wages, and ultimately reinforce a more durable cycle of consumption and savings.
Banks: Traditional bank funding dynamics are evolving, creating a greater role for capital markets and private capital solutions, particularly in areas where flexibility, speed, and structuring matter.
Join our newsletter to have all of this content + Exclusive Newsletter Bonus Content delivered to your inbox every week
