Nihon M&A Center establishes AtoG Capital to drive ASEAN expansion and cross-border M&A

• Nihon M&A Center Holdings establishes AtoG Capital, a subsidiary fund management company to drive global expansion and cross-border M&A transactions between Japan and the ASEAN region.
• AtoG Capital aimed at supporting SMEs in restructuring their operational structure to foster streamlined M&A transactions with Japanese companies.
• The project kicked off with the first capital agreement in Malaysia, marking the inaugural investment of the AtoG 1st Investment Business Partnership.

Nihon M&A Center has established “ASEAN to Global Capital” (AtoG Capital), a subsidiary fund management company aimed at supporting Japanese companies’ expansion into the ASEAN region. The fund aims to facilitate cross-border M&A transactions, with the first partnership kicked off in Malaysia with CK MAC Global, a trading company specializing in Computer Numerical Control (CNC) machineries and providing after-sales services, which has a presence in Malaysia and Singapore.

Through this fund, AtoG Capital will focus on promoting cross-border M&A opportunities between Japanese companies and small and medium enterprises (SMEs) within the ASEAN region. This initiative underscores the company’s commitment in assisting these SMEs in restructuring their operations, thus, fostering successful partnerships with Japanese companies as the ultimate outcome.

With Japan’s domestic market at the phase of maturity and saturation, it presents limited growth potential compared to the dynamic and rapidly expanding economies in foreign markets. The ASEAN region, including countries such as Malaysia, Singapore, Indonesia, Thailand, and Vietnam, offers significant opportunities for Japanese companies seeking to diversify and grow. By expanding their investments into these high-growth markets, Japanese companies cannot only mitigate risks associated with domestic economic fluctuations but also leverage new opportunities for long-term growth and market expansion.

Statistically, the influx of investment from Japan to ASEAN has highlighted that the total two-way trade between both sides have reached US$241.1 billion in 2023, while the total Foreign Direct Investment (FDI) inflow from Japan to ASEAN amounted to US$14.5 billion.

• Japan to Malaysia: Japan continues its robust investment in Malaysia, contributing approximately US$ 1.15 billion (RM5.5 billion), with strong growth in electronics and automotive sectors
• Japan to Indonesia: Despite global challenges, Japan remains a significant investor, injecting around US$4.63 billion into Indonesia
• Japan to Thailand: Japan’s commitment to Thailand remains solid, with US$ 1.08 billion (THB 40.2 billion), focused on advanced manufacturing
• Japan to Vietnam: Japan invested nearly US$6.57 billion, representing over 17.9% of the total investment and a remarkable 37.3% increase from the previous year
• Japan to Singapore: Japan’s investment in Singapore surged, reaching US$ 5.76 billion (SGD$7.89 billion), highlighting strong collaboration in finance and technology

Since 2016, Nihon M&A Center Singapore has closed 14 deals, ranging from S$10 million to almost S$15 million, from the construction, IT and distribution industries.

Thus, by having this new initiative through AtoG Capital, Nihon M&A Center aims to empower ASEAN companies, especially middle sized (mid-cap) companies to unleash their full potential on the global landscape.

AtoG Capital will facilitate a two-phase exit process for companies, supporting internal restructuring and later assisting in share sales through Nihon M&A Center’s advisory services. The fund will ensure alignment with Japanese business standards and offer a structured Post-Merger Integration (PMI) approach, minimizing time and costs for successful exits.

Specialising in restructuring corporate governance to align with Japanese business standards and providing a structured approach to Post-Merger Integration (PMI), Nihon M&A Center ensures a seamless transition into Japanese business culture. This investment model minimizes the time and costs associated with successful exits while reducing the need for direct management involvement in strategic decisions, allowing businesses to operate more efficiently.

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