Drew Edwards - Partner - GMO LLC

Would you introduce yourself briefly?

My career has unfolded at the intersection of Japanese companies, global capital, corporate governance, and shareholder rights. I first came to Japan as an undergraduate at Sophia University, an experience that set the direction for much of my professional life. After beginning my career in Tokyo at Pfizer Pharmaceuticals, I returned to the United States to earn a law degree at Northwestern University and an MBA from the Kellogg School of Management.

Today, I am a partner at GMO, where I oversee the firm’s Japan investing business. I also serve on two company boards in Japan—one listed company and one private equity–owned company—and am actively involved in both Japan-based and San Francisco–based chapters of the Young Presidents’ Organization (YPO). I recently relocated to Boston from San Francisco and have previously lived in Chicago and Texas, where I was born. In that sense, my background spans much of the United States, with Japan remaining a constant and formative presence throughout my life and career.

What drew you to attend Sophia University in Tokyo for your undergraduate degree in International Business?

Part of the motivation was the perspective of an adventure-seeking teenager who did not want to follow a conventional path. I had a strong interest in economics, business, and capital markets, and in the 1980s, those interests naturally led to curiosity about Japan and its widely discussed “economic miracle.”

At the time, I imagined building a career in Japan’s financial sector and prepared by studying Japanese before moving to Tokyo. Once there, it became clear that my language skills still had a long way to go. Sophia University stood out for its international orientation, and the ability to take courses in English made it an ideal environment in which to deepen my understanding of Japan while continuing my academic studies.

Your career has centered on finance, from Japanese equities to corporate finance in Tokyo. What changes have you observed in Japan’s financial sector over that time?

The collapse of what is often described as history’s largest asset bubble was the backdrop to my early years in Japan. When I graduated from Sophia with aspirations of becoming an investment banker in Japan, the bubble had already burst, and Japan’s financial sector was undergoing a painful contraction. Opportunities in investment banking had largely disappeared. I was fortunate enough to join Pfizer Pharmaceuticals in Tokyo, where the company was pursuing growth through mergers and acquisitions.

Later, when I moved to an investment firm, another transition was underway. Japan has steadily evolved from a bank-centric corporate governance system toward one that is more shareholder-focused. Companies in Japan began to place greater emphasis on capital efficiency and metrics such as return on equity. I have seen management teams move from limited engagement with shareholders to actively incorporating shareholder perspectives into corporate decision-making, marking a significant transformation in corporate culture.

What lessons have you learned from cross-border business between the U.S. and Japan?

One of the most important lessons is the value of balance. Companies in Japan are known for their depth of engineering expertise, commitment to quality, long-term orientation, and respect for corporate tradition. Those strengths, however, can sometimes make it more difficult to take decisive action or allocate resources efficiently.

By contrast, the U.S. model emphasizes decisiveness, competition, and capital efficiency. That discipline supports innovation and growth, but it can also place too much emphasis on financial engineering at the expense of operational excellence. When the strengths of both approaches are combined, Japanese and American organizations can complement one another exceptionally well.

What opportunities do you see for Boston’s financial community to engage with Japan?

Japan today offers a broad and increasingly accessible spectrum of opportunities for global financial services companies. Across private markets, public equities, and financial services, cross-border engagement has become more active and more sophisticated.

As a public equity investor, I have had the privilege of experiencing many of these changes firsthand. Recently, I have been recommending to my daughter, who is at a Boston-based private equity / growth capital firm, to take a closer look at Japan. Cultural and structural shifts are supporting the expansion of Japan’s startup and venture ecosystem, which will require additional growth capital over time.

Another meaningful development is the evolution of corporate governance. Boards in Japan were historically composed almost entirely of internal directors, but companies are now actively seeking independent directors with global experience. As demand for qualified independent directors continues to grow, Japan presents a compelling opportunity for those interested in contributing at the board level.

When you are not working, what are some of your favorite places to visit in Japan?

When I was younger, I tended to return to Tokyo as quickly as possible. Over time, however, I have developed a much deeper appreciation for Japan’s natural landscapes and regional areas. My family and I enjoy spending time in Aomori and Yamagata, particularly during ski season.

More recently, I traveled to Yakushima, which I highly recommend. Its ancient forests and dramatic scenery feel almost otherworldly. Through work, I have also had the opportunity to visit places throughout Japan and have come to appreciate the quiet beauty and richness of Japan outside its major cities—an appreciation that has grown with time.

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