Neuberger Berman and SMBC to Establish Joint Venture for Private Debt in Japan

April 27, 2026 (Tokyo) – Neuberger Berman East Asia Limited (“Neuberger Berman Japan”), a subsidiary of the independent global asset manager Neuberger Berman, has agreed with Sumitomo Mitsui Banking Corporation (President and CEO: Akihiro Fukutome; “SMBC”) to establish a joint venture that will serve as a General Partner (GP) for private debt funds investing in domestic leveraged buyout (LBO) loans.

LBO loans are a rapidly expanding market in Japan and represent a significant alternative asset class to traditional bank lending, with substantial room for growth. The new joint venture will structure and manage Japan-focused private debt funds primarily targeting LBO senior loans. This will enable domestic and international investors to access the Japanese private debt market strategically and efficiently.

This partnership is a first-of-its-kind initiative in Japan, combining a leading Japanese financial institution that has long supported corporate finance as an LBO lender with an independent asset manager that has an extensive track record in the North American private debt market. By fusing SMBC’s superior origination capabilities and rigorous credit underwriting with Neuberger Berman’s private investment expertise developed since 1987 and its strategic relationships with leading private equity funds, the venture aims to build a direct lending ecosystem optimized for the Japanese market. Leveraging the North American group's long-term track record, the JV aims to provide flexible structuring and responsible execution tailored to Japan’s business succession, restructuring, and growth investment contexts.

Ryo Ohira, President of Neuberger Berman Japan, stated: “As the Japanese buyout market expands, diversifying the lender base will increase market depth and stabilize capital supply. A system where banks and private debt funds complement each other broadens capital structure options and promotes optimal terms for corporate growth. Through this collaboration, we aim to establish healthy competition and transparency in the Japanese LBO loan market, ultimately contributing to the productivity and international competitiveness of portfolio companies and the Japanese economy as a whole.”

Yasuyuki Fujita, Managing Director of Japan Private Debt at Neuberger Berman, added: “We will deploy best practices from North American private debt management, adapted for the Japanese market, while deepening ties with domestic and international private equity managers. Under this partnership with SMBC, we will provide a consistent ecosystem from deal sourcing to portfolio management, supporting the sustainable value creation of Japanese companies.”

The Japan Private Debt team will be supported by Neuberger Berman’s US Private Debt investment team. Established in 2013, Neuberger Berman’s Private Debt division manages $25 billion in assets across evergreen and closed-end funds. Since its inception, the division has invested over $29 billion in more than 250 private equity-backed companies in the US, with annual default and loss rates remaining at ultra-low levels of 0.03% and 0.01%, respectively, as of March 2026.