USA & Europe Business COO Message

Yoshiteru Suzuki
Senior Managing Executive Officer
Chief Operating Officer, USA & Europe Business Unit
President and Chief Executive Officer, ORIX Corporation USA

Mission of the USA & Europe Business Unit

The role expected of the USA & Europe Business Unit is very clear.

In Europe, ORIX operates traditional asset management businesses—centered on Robeco^*1—covering equities, fixed income, and other conventional asset classes. In the United States, where I have long been involved, we have expanded our alternative asset management businesses, including private credit and real estate, by leveraging our own balance sheet while also attracting third-party capital.

1. Robeco Institutional Asset Management B.V. (RIAM)

Many asset‑management companies specialize exclusively in either traditional assets or alternative assets. ORIX, however, has both. I believe that connecting these two strengths is the key to further advancing ORIX’s asset‑management business. To achieve this, Europe and the United States must not operate separately, but as a single integrated business unit.

For some time, we have been discussing how Europe and the United States could be managed more cohesively. But to translate collaboration into sustained results, we need a structure that enables integrated management at the organizational level. That is why we established the USA & Europe Business Unit, bringing the two regions together under one leadership structure.

Europe and the United States differ in organizational structure and culture. Traditional and alternative asset management also require distinct expertise and sales approaches. To promote collaboration while leveraging these diverse strengths, it is essential to have a framework that respects each region’s characteristics while deepening coordination. The USA & Europe Business Unit is designed to support that collaboration.

What we aim for is not merely regional integration. Our goal is to combine the knowledge and networks of Europe and the United States to create new value.

Making the Hybrid Model a Driver of Growth

Since becoming CEO of ORIX Corporation USA in 2019, I have worked to expand our asset‑management businesses that utilize third‑party capital.

The foundation for this effort lies in strengths ORIX has cultivated over many years. Many major alternative asset managers in the United States began by managing other people’s capital and later built their own balance sheets. ORIX has taken the opposite path. For decades, we have continued to invest our own capital, taking on all the associated risks. It was precisely because we had that experience and track record that we believed we could also attract third-party capital.

I often say that ORIX should invest its own capital first, and only offer investments to our clients after we have confirmed their value ourselves. We do not recommend investments to investors that we have not made ourselves. Certainly, one can build a business by simply purchasing deals originated by other companies, but that will not lead to true differentiation. We source our own opportunities and invest in them ourselves. I believe that consistently building that origination capability is what gives ORIX its competitive edge.

By taking these risks ourselves, we can also manage assets from the same perspective as our investors. This alignment is a key differentiator for ORIX in attracting investor capital and an essential element in building long-term relationships of trust.

Since becoming CEO in the United States, I have been leveraging these strengths to expand asset‑management businesses with third‑party capital.

Using third‑party capital enables us to take on larger deals. In addition to investment returns, we can earn management fees and performance fees, allowing us to generate higher returns with the same amount of capital. I believe this hybrid model will play a significant role in achieving our target of 15% ROE.

Of course, attracting third‑party capital is not easy. Once we take on investor capital, we must steadily build out every aspect of our operations, including investment processes, reporting, compliance, and more. To be honest, this process has taken more time than I initially expected. But because we have built this foundation step by step, I now feel that the path toward our next stage of growth has finally come into view.

Taking Our U.S. Business to the Next Stage of Growth

Many investors have asked about the earnings environment of our U.S. business.

Although profit declined significantly in the fiscal year ended March 2026, I do not believe the underlying earning power of our U.S. business has weakened. The primary drivers of the decline were portfolio optimization initiatives and impairment charges related to legacy assets, both of which were part of our efforts to reshape the balance sheet for future growth. In fact, I view this past year as one in which we strengthened our management foundation in pursuit of higher ROE.

The sale of several private‑equity investees was part of this effort and reflects our approach to capital recycling. Rather than pursuing scale for its own sake, we aim to allocate capital with discipline, directing it toward areas where we have competitive advantage and can achieve sustainable growth.

In the U.S. private‑credit market, while major alternative‑asset managers have been pursuing larger deals, we remain focused on the middle‑market segment. This area requires strong underwriting judgment and deep networks. The track record and origination we have built over many years are key sources of differentiation. Another area we expect to grow is asset‑based lending (ABL). Unlike lending based solely on corporate creditworthiness, ABL focuses on the value of the underlying collateral. It is an area within private credit where we see significant growth potential.

A critical driver of that growth is Hilco^*2, which we acquired in 2025. For nearly 40 years, Hilco has specialized in asset valuation, and its expertise provides a major advantage in ABL and other related fields. What ABL and real estate share is an emphasis on real assets and collateral value. Even when market conditions shift, the ability to accurately assess asset value enables us to offer differentiated investment opportunities to investors.

1. Hilco Trading, LLC

While the ABL market continues to expand, competition is intensifying. Because we have long undertaken risk using our own capital, maintaining disciplined investment judgment and the ability to assess deals will remain essential. Looking ahead, we also intend to leverage ORIX’s global network to explore opportunities to expand Hilco’s valuation expertise and ABL capabilities into Europe and the broader APAC region, including Japan.

Our strategic direction has not changed. By building on the origination capabilities we have developed in the middle market, further advancing our hybrid model that utilizes third‑party capital, and expanding ABL and other new growth areas, we aim to elevate our U.S. business to its next stage of growth.

Towards a Global Asset‑Management Platform

The establishment of the USA & Europe Business Unit has opened new growth opportunities for us.

In Europe, we have strong capabilities in traditional asset management, centered on Robeco. In the United States, we have built strengths in alternative asset management, particularly in private credit and real estate.

Through the USA & Europe Business Unit, we aim to achieve five key objectives.

First, we seek to integrate our client bases and distribution platforms. By leveraging the client relationships and product offerings that each region has developed, we can deliver a broader range of products to a wider set of investors.

Second, we aim to jointly develop products. For example, institutional investors such as life‑insurance companies design their entire portfolios by combining not only equities and fixed income, but also private credit and real estate. For these investors, we want to provide solutions that draw on our expertise in both traditional and alternative asset classes.

Third, we intend to share knowledge and know‑how. By combining Robeco’s expertise in traditional asset management with the U.S. team’s expertise in private‑asset management, we can strengthen the competitiveness of both sides. Collaboration has already begun in certain areas, such as private credit, and we expect further coordination going forward.

Fourth, we aim to expand business opportunities. We plan to bring the private‑asset strategies we have developed in the United States to Europe, creating new avenues for growth. Businesses related to ABL and real estate—where Hilco’s capabilities are particularly valuable—also have the potential to expand into broader regions over time.

Fifth, we want to support the growth of our European business. By leveraging the networks and market insights of our U.S. operations, we hope to contribute to further growth of the European business, particularly in the U.S. market.

Our goal is not to run Europe and the United States separately. Instead, we aim to build a single global asset‑management platform that brings together the strengths of traditional and alternative asset management.

We will first deliver results in Europe and the United States and then extend that experience across the entire Group. Through this steady progress, I believe we can shape an asset‑management model that is uniquely ORIX—and in doing so, enhance our corporate value.