Private equity-led take-private deals in Japan are on course to exceed last year’s $40.3bn record as listed companies increasingly pursue buyouts under pressure from activist investors and governance reforms from the Tokyo Stock Exchange, according to Reuters.

Data from Dealogic shows private equity deals worth $27.6bn were announced by 20 August, almost three times the $9.5bn recorded over the same period in 2024.

The surge has been underpinned by major transactions, including Blackstone’s $3.5bn bid for engineering staffing firm TechnoPro and EQT’s $2.7bn offer for elevator-maker Fujitec.

Carlyle Japan managing director Kazuhiro Yamada said, “We have an extremely rich pipeline of deals. Of the more than 300 opportunities Carlyle Japan is seeing across its three core sectors, around 30 have a chance of closing in the next 12 to 18 months.”

Private equity managers report that companies are increasingly approaching them directly to explore delistings, with some seeking partnerships proactively before becoming activist targets. “In some sense it has become a natural strategic option,” said Eiji Yatagawa, partner at KKR in Japan.

Japan’s capital markets also support later relistings and sponsor-to-sponsor exits, creating flexibility for private equity investors. 

“There’s a lot of capital to deploy in the industry and as a result, private equity firms’ positioning as potential buyers is strengthening,” said Teruyuki Asaoka, managing director of EQT’s private equity team in Japan.

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