KKR has introduced a new employee ownership programme in Japan through Ownership Works, a private equity-backed initiative founded by the firm’s Co-Head of Private Equity, Pete Stavros, to expand access to wealth creation for workers, according to a report by the Financial Times.

The launch marks the first international expansion of Ownership Works, which aims to deliver $20bn in equity to employees globally by 2030. Since its founding in 2022, the U.S.-based organisation has distributed about $1bn in payouts to employees at partner companies.

Japan’s programme will be supported by Warburg Pincus, Japan Industrial Partners, and leading financial institutions including Mizuho and SMBC. Senior government officials are expected to attend the Tokyo launch, underscoring how the perception of private equity in Japan has evolved since global firms were once dismissed as “vultures” during their early market entry.

“Japan’s got an insanely low quit rate but an employee engagement score that’s far worse than America,” said Stavros. “It ranks 137th out of 141 countries on employee engagement.”

Ownership Works aims to counter that disengagement by giving blue-collar employees equity stakes in portfolio companies. The initiative has already been rolled out at KKR-owned Bushu Pharma and enterprise software developer Yayoi in Japan.

Critics argue that employee ownership plans often resemble one-off cash bonuses when companies are sold, but KKR maintains that the programmes are designed to continue under new ownership.

The initiative’s expansion into Japan reflects a broader effort by private equity firms to demonstrate long-term value creation and broader societal benefit amid record levels of dealmaking activity in the country.

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