Los Angeles-based alternative investment management firm Ares Management Corp. has appointed Masahiko Oshima, former deputy chairman of Sumitomo Mitsui Banking Corp. (SMBC), to lead its operations in Japan.
This decision follows CEO Michael Arougheti’s announcement last year about opening their first office in Tokyo as part of the firm’s strategy to capitalize on Japan’s growing alternative asset market. Oshima’s appointment also signifies deepening ties between Ares and SMBC, which has held a 4.9% stake in the American company since 2020.
“We are pleased to welcome Mr. Oshima to Ares and are confident that his depth of expertise in both international and Japanese markets will help accelerate our growth in the region,” said Arougheti.
So many things are changing in the Japanese business fields, including asset management. Ares has an opportunity to use these structural changes to grow its business and presence in Japan, and to contribute to the growth of the economy in Japan as well as the broader Asian-Pacific region.
Ares Asia Partner and Chairman of Japan Masahiko Oshima
Oshima, who joined Mitsui Bank in 1984, has more than 40 years of experience in international finance. He also led SMBC’s global corporate banking unit and was CEO of its European operations.
“I am honored and excited to join Ares, a leader in the global alternatives industry, as the firm builds its footprint in Japan. Ares’ investment in Japan is a testament to its commitment and belief in Japan and the wider Asia-Pacific region’s exciting growth prospects,” Oshima said.
“Together, I believe we will unlock many new avenues to scale Ares’ regional capabilities and offerings to meet the needs of both institutional and individual investors alike. Currently, so many things are changing in the Japanese business fields, including asset management. Ares has an opportunity to use these structural changes to grow its business and presence in Japan, and to contribute to the growth of the economy in Japan as well as the broader Asian-Pacific region,” he added.
In recent years, Ares has been eyeing Asia-Pacific as a potential growth market, increasing its investment and operations across major regions, such as Hong Kong, Singapore, Korea, India, China, and Australia. Japan is the latest addition to this expansion.
As the Japanese government introduces policies to promote the country as an asset management hub, investors are optimistic about access to alternative assets like private equities and real estate. According to investment data company Preqin, private assets under management in Japan account for only 1% of the global market, offering organizations like Ares significant growth opportunities.
Currently, Ares has been focusing on marketing its investment products to institutional investors in Japan, such as insurers and pension funds. With Oshima at the helm, the firm now plans to reach out to wealthy individuals and increase investment in local alternative assets, a strategic shift that anticipates higher demand among investors and establishes Tokyo as their regional investment hub.
