HONG KONG -- Asia-focused private equity investor PAG has agreed to buy Japanese restaurant operator Gyro Holdings, its first deal in 2021 in the third-largest global economy, where it hopes to invest several billion dollars in the coming years.

PAG, which manages $45 billion, wants to invest in sectors including manufacturing and consumer-related businesses in Japan. It has no fixed allocation for the nation, and PAG's founder and chief executive officer, Weijian Shan, said the company is willing to deploy even $10 billion in the nation next year.

"Our thinking is that we can help Japanese companies grow and bring their products to foreign markets, to take advantage of the growth in foreign markets," said Shan, a 67-year-old private equity veteran who was previously with TPG. "These companies are very good investment targets as long as you help them grow their businesses."

PAG focuses on private equity, real estate, private debt and absolute return funds, which aim to use derivatives to achieve positive returns independent of the market environment. Besides Japan, he also sees investment opportunities in China.

In Japan, where it hired two investment veterans last December, it is drawn by the well-developed regulation that paves the way for low-risk investment. In China, where PAG bought 10% of mall operator Zhuhai Wanda Commercial Management Group for $2.8 billion in August, it is finding valuations attractive after the recent regulatory crackdown.

The acquisition of Gyro -- which was established in 2006 and operates over 200 restaurants, primarily in Tokyo, through 90 brands spanning izakaya bars to high-end restaurants -- for an undisclosed sum adds to PAG's investments in multiple food service businesses.

Its portfolio includes ParadiseDynasty in Singapore, Craveable Brands and The Cheesecake Shop in Australia, and Nayuki Tea in China.

"Restaurants are affected adversely by COVID-19, but we think that COVID will be over and the restaurant business will recover," Shan, who started PAG's private equity business in 2010, said in a recent interview with Nikkei Asia. "This is probably a good time to buy."

PAG has more than 100 employees in its Tokyo office and has deployed several billion dollars in the nation, primarily in the real estate sector. It invested $250 million in 2013 in theme park operator Universal Studios Japan and exited the company four years later.

Japan's advances in technology and automation is also an attraction, he said.

"When the population ages, you think about technologies to replace labor," he said, referring to products required to serve a nation where more than a quarter of the population is over 65. "That's why Japan is so strong with robots, industrial robots and automation. I remain very positive on Japan."

PAG, which is raising its fourth and largest fund yet, sees China as an attractive investment destination, too. It targets to raise $9 billion for the buyout fund, some 50% larger than its previous fund, which closed for subscription in 2018, according to a source familiar with the transaction. The first close for the fourth fund is expected by the middle of next year. Shan did not disclose any fundraising target.

"If the business fundamentals [in China] remain strong, sooner or later" investment opportunities will open up, Shan said. "That's why maybe it's a good time to buy. For private equity, it is not like stock market investing. The advantage is you can hold a business for a much longer time and find good opportunities to exit or to get into the market."

Shan believes China's regulatory crackdown on private enterprises will only have a temporary effect on PAG's plan to exit investments. The crackdown on sectors ranging from technology to property developers has wiped off hundreds of billions of dollar in market capitalization of listed companies this year.

Shan said PAG had benefited from a "strong" market in the past few years and cited its exit from Tencent Music earlier this year. It had invested in China Music originally, which in 2016 merged with Tencent QQ Music and rebranded as Tencent Music -- near the peak of the market. It pocketed 20 times its initial investment.

PAG only also has limited exposure to China's real estate sector, though Shan said he believes that the fundamental demand for property in China will remain strong and that certain areas will continue to experience significant growth.

China's real estate sector is seeing a string of missed bond coupon payments and redemptions as companies such as China Evergrande Group run out of cash. Chinese authorities last year laid out rules that barred heavily indebted companies from borrowing more until they cut their leverage, leading to a liquidity crunch across the sector.

Shan said it is necessary for the government to take action to prevent systemic risk, as the property sector continued to inflate even after the government imposed the rules late last year.

He pointed to PAG's recent investment in conglomerate Dalian Wanda Group's commercial property management unit, Zhuhai Wanda, as an example of the potential available in the Chinese property sector. Zhuhai Wanda, which manages 380 shopping malls, filed for a Hong Kong initial public offering in October.

"We would expect very strong growth in the next few years. And it has no debt at all, and not much assets, either, because it is a service company," Shan said. "Even in the property sector, it depends on what you do. In some areas, you still see very strong growth."