Private equity investment in Japan reaches $17.9bn amid rising deal activity

Private equity investment in Japan jumped 40.8% in 2024, reaching $17.9bn. This growth pushed Japan’s share of private equity and venture capital deals in the Asia-Pacific region to 15.6%, according to S&P Global Market Intelligence. 

Analysts expect momentum to continue in 2025 as competition among private equity firms intensifies and corporations face increasing pressure to improve capital efficiency. As a result, take-private and carve-out deals have surged, attracting global investors.

Stable interest rates and low borrowing costs make Japan an appealing market. At the same time, succession challenges in family-owned businesses create additional investment opportunities. Foreign investors, who previously struggled to find quality assets, now see more companies exploring strategic sales.

Major deals in 2024 included KKR’s $3.9bn acquisition of a 33.57% stake in Fuji Soft Inc., followed by a $2.6bn bid for the remaining shares. Hillhouse Investment Management and Rava Partners also led a $2.8bn take-private deal for real estate firm SAMTY HOLDINGS Co. Ltd. Japan-based private equity firms played a smaller role in large transactions. Notable domestic deals included the $388m acquisition of BigMotor Co. Ltd. and a $211.7m funding round for AI research company Sakana AI K.K.

Japan-focused private equity funds secured $8bn in 2024, surpassing the country’s $5bn annual average over the past decade. With substantial capital available, investors anticipate record-breaking private equity activity in 2025, barring major geopolitical disruptions.

Source: S&P Global

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