TOKYO -- The Tokyo Metropolitan Government is joining hands with the private sector to set up a foundation tasked with supporting startup businesses in such fields as asset management.
The foundation is expected to manage roughly 10 billion yen ($89 million) in assets, providing money to young fund managers, among others. Tokyo seeks to act as a generous host to asset management companies as part of its project to turn itself into an international financial hub. A concrete plan will be drawn up next month. A portion of the assets will likely be used to nurture the financial technology, or fintech, sector.
The Tokyo government plans to put up around 5 billion yen, and will solicit contributions from institutional investors.
Proposals to realize Tokyo's financial hub dream will be unveiled Friday by an expert panel headed by Atsushi Saito, chairman of U.S. private-equity firm Kohlberg Kravis Roberts' Japanese unit. Tokyo Gov. Yuriko Koike will follow up with the announcement of the foundation's creation, slated for fiscal 2018.
The foundation is expected to get involved in a program to nurture asset managers, and will also promote the Tokyo market abroad and court foreign financial institutions to the capital. In November, Tokyo will sign a memorandum of understanding with Britain's financial center, the City of London, to seek the latter's help in information collection and other matters.