Japan’s take-private deals are on course to surpass last year’s record $40.3 billion, as companies increasingly embrace private equity amid pressure to boost returns and comply with Tokyo Stock Exchange reforms. Once dismissed as “vultures,” private equity firms are now welcomed as strategic partners as management teams consider delisting to revamp capital structures and address activist investor demands.
Deal volume has nearly tripled compared to the same period in 2024, hitting $27.6 billion by August 20, according to Dealogic. Major transactions this year include Blackstone’s $3.5 billion bid for TechnoPro, EQT’s $2.7 billion acquisition of Fujitec, and KKR’s buyouts of Fuji Soft and Topcon, the latter alongside a state-backed fund.
Executives at Carlyle, KKR, and EQT report an unusually strong pipeline of opportunities, with many deals now initiated by companies themselves rather than activists. Going private allows firms to restructure outside public scrutiny while keeping options open for relisting or sponsor-to-sponsor exits later. Industry leaders expect the wave of buyouts to continue, underpinned by governance reforms, robust capital markets, and abundant private equity dry powder.
Source: Reuters
