News Digest: Japan’s Private Equity Investment Surges 40.8% in 2024, Poised for Further Growth
January 29, 2025
News Digest:
Private equity investment in Japan soared 40.8% in 2024, reaching $17.9 billion, according to S&P Global Market Intelligence. This surge boosted Japan’s share of Asia-Pacific private equity and venture capital deals to 15.6%, reflecting growing investor interest in the market.
Analysts predict continued momentum in 2025 as private equity competition intensifies and corporations prioritize capital efficiency. This has fueled a rise in take-private and carve-out deals, drawing global investors eager to capitalize on Japan’s favorable conditions.
With stable interest rates and low borrowing costs, Japan remains an attractive market. Meanwhile, succession challenges in family-owned businesses present additional investment opportunities. Foreign investors, once constrained by limited deal flow, are now finding more quality assets available for acquisition.
Notable 2024 transactions included KKR’s $3.9 billion acquisition of a 33.57% stake in Fuji Soft Inc., followed by a $2.6 billion buyout of the remaining shares. Hillhouse Investment Management and Rava Partners also led a $2.8 billion take-private deal for real estate firm SAMTY HOLDINGS Co. Ltd. Domestic firms played a smaller role in large-scale deals, with highlights including the $388 million acquisition of BigMotor Co. Ltd. and a $211.7 million funding round for AI research firm Sakana AI K.K.
Japan-focused private equity funds raised $8 billion in 2024, surpassing the $5 billion annual average of the past decade. With ample capital on hand, record-breaking activity is expected in 2025—barring major geopolitical disruptions.