- Top Private Equity Firms Japan -

Welcome to the Rainmakrr Top Private Equity Firms Japan 2023 Guide. A private equity firm is an investment management company that provides financial backing and makes investments in the private equity of startup or operating companies through a variety of loosely affiliated investment strategies including leveraged buyout, venture capital, and growth capital. Often described as a financial sponsor, each firm will raise funds that will be invested in accordance with one or more specific investment strategies. Typically, a private equity firm will raise pools of capital, or private-equity funds that supply the equity contributions for these transactions. Private equity firms will receive a periodic management fee as well as a share in the profits earned (carried interest) from each private-equity fund managed.

Top Private Equity Firms in Japan: A Comprehensive Guide

Private equity firms are investment companies that pool capital from high net worth individuals and institutions to buy and invest in private companies.

In Japan, the private equity market has been growing rapidly in recent years, driven by a surge in deal activity and increasing interest from global investors.

According to a report by Bain & Company, the Asia-Pacific region, including Japan, is expected to be the fastest-growing private equity market in the world over the next few years.

The private equity industry in Japan has come a long way since its inception in the 1980s.

Today, there are over 300 private equity firms operating in the country, managing assets worth billions of dollars.

These firms invest in a wide range of industries, including healthcare, technology, financial services, and consumer goods.

Some of the major private equity firms in Tokyo include Advantage Partners, J-Star, and Unison Capital.

Key Takeaways

• Japan's private equity market has been growing rapidly in recent years, driven by a surge in deal activity and increasing interest from global investors.

• The private equity industry in Japan has over 300 firms managing assets worth billions of dollars, investing in a wide range of industries.

• Major private equity firms in Tokyo include Advantage Partners, J-Star, and Unison Capital.

Overview of Private Equity in Japan

Private equity firms in Japan have been experiencing a surge in deal activity in recent years, with the market becoming increasingly competitive. The Japanese private equity market is growing, and more players are looking to build out their footprint in the region.

According to a report by Private Equity International, the Japanese private equity market has been heating up, with deal activity surging. The report examines how growth is intensifying competition for talent and looks at rising momentum in the impact investing and GP-led secondaries markets.

Another report by PwC analyses investment, exit, and fundraising trends in the growing private equity market in Japan and provides related advice. The report highlights the importance of ESG and sustainability in M&A.

The Japanese private equity market has continued to be quite active, with the overall number of mergers and acquisitions transactions involving Japanese parties being robust. The market has also seen an increase in the number of buyouts, with many companies looking to expand their businesses and take advantage of the growing market.

In 2021, the Japan private equity market had a landmark year, with the number of transactions and deal value hitting their highest levels ever, according to a report by Bain & Company. Deal value came in at a total of ~¥2.7T, a 160% increase over 2020.

Overall, the private equity market in Japan is growing and becoming increasingly competitive. As the market continues to expand, private equity firms will need to stay ahead of the competition by focusing on talent acquisition and ESG considerations.

Major Private Equity Firms in Tokyo

Tokyo, the capital city of Japan, is a hub for private equity funds. The city has a number of major private equity firms that operate in various sectors, including consumer goods, healthcare, technology, and finance. These firms invest in companies with high growth potential and help them to achieve their goals through strategic planning, financial management, and operational improvements.

One of the major private equity firms in Tokyo is the Advantage Partners Group. The firm was founded in 1992 and has since invested in over 50 companies. Advantage Partners focuses on investing in mid-sized companies in Japan and has a diverse portfolio that includes consumer goods, healthcare, and technology. The firm has over 60 professionals with extensive experience in private equity and finance.

Another major private equity firm in Tokyo is the J-STAR Co. Ltd. The firm was founded in 2006 and has invested in over 30 companies. J-STAR focuses on investing in mid-sized companies in Japan and has a diverse portfolio that includes healthcare, technology, and retail. The firm has a team of over 20 professionals with extensive experience in private equity and finance.

One more major private equity firm in Tokyo is the Unison Capital Inc. The firm was founded in 1998 and has invested in over 40 companies. Unison Capital focuses on investing in mid-sized companies in Japan and has a diverse portfolio that includes consumer goods, healthcare, and technology. The firm has over 60 professionals with extensive experience in private equity and finance.

These major private equity firms in Tokyo have a proven track record of successful investments and have helped many companies to achieve their goals. They continue to be major players in the private equity industry in Japan and are expected to remain so for the foreseeable future.

Investment Landscape Private equity firms in Japan are experiencing a surge in deal activity, with more players looking to build out their footprint in the region. According to a report by Private Equity International, the Japanese private equity market has been heating up, with growth intensifying competition for talent and rising momentum in the impact investing and GP-led secondaries markets.

The Asia-Pacific Private Equity Report 2022 by Bain & Company revealed that the region's share of global assets under management (AUM) rose to 30% at the end of 2021. Over the past decade, AUM focused on this region grew 2.4 times faster than for North America and 3.0 times faster than for Europe.

Investors are taking note of this trend, as evidenced by the funds raised by private equity firms in Japan. PwC's report on Trends in Japan's private equity market and related considerations notes that the total amount of funds raised by private equity firms in Japan in 2021 was JPY 1.3 trillion, a significant increase from the previous year.

Private Equity Firms Japan Guide

The same report also highlights the growing number of investors in Japan's private equity market. In 2021, there were 1,188 investors in private equity funds in Japan, up from 1,051 the previous year. This indicates a growing interest in private equity investments in the region.

However, it is important to note that private equity firms in Japan are still cautious in their investment approach. S&P Global Market Intelligence reports that private equity moves cautiously in Japan, with deals on the rise. This is likely due to the unique challenges and complexities of the Japanese market, including cultural differences and regulatory hurdles.

Overall, the investment landscape for private equity firms in Japan is promising, with increasing deal activity, a growing number of investors, and a significant amount of funds raised. However, firms must continue to navigate the challenges of the market and approach investments with caution.

Pandemic and Market Disruptions

The COVID-19 pandemic and the subsequent lockdowns and travel restrictions have had a significant impact on the private equity market in Japan. According to the Asia-Pacific Private Equity Report 2022, the second half of 2021 saw a slowdown in deal-making and exits due to the pandemic.

The disruptions caused by the pandemic have also led to supply chain disruptions, which have affected the operations of many portfolio companies. This has resulted in delays in the delivery of goods and services, increased costs, and reduced profitability. Private equity firms have had to work closely with their portfolio companies to mitigate the impact of these disruptions and ensure business continuity.

Private Equity Firms Japan Guide

Despite the challenges posed by the pandemic and market disruptions, private equity firms in Japan have remained resilient. The Japan Private Equity Transactions Report 2022 notes that the number of transactions and deal value hit their highest levels ever in 2021, with deal value reaching a total of ¥2.7T, a 160% increase over 2020.

Private equity firms in Japan have also had to adapt to the new market conditions brought about by the pandemic. The Trends in Japan's private equity market and related considerations report by PwC highlights the need for private equity firms to focus on digital transformation, ESG (environmental, social, and governance) considerations, and risk management in the wake of the pandemic.

In conclusion, the COVID-19 pandemic and market disruptions have presented significant challenges to private equity firms in Japan. However, they have remained resilient and adapted to the new market conditions. Private equity firms have had to work closely with their portfolio companies to mitigate the impact of disruptions and ensure business continuity. The pandemic has also highlighted the need for private equity firms to focus on digital transformation, ESG considerations, and risk management.

Future Outlook

Looking ahead, the private equity market in Japan is expected to continue to grow and evolve. With many Japanese companies looking to expand their businesses globally, there will be a growing demand for private equity firms to provide the necessary capital and expertise.

Fundraising is also expected to remain strong, with investors continuing to show interest in the Japanese market. According to a report by Bain & Company, private equity transactions in Japan reached a record high in 2021, with deal value hitting ¥2.7T, a 160% increase over the previous year.

Private Equity Firms Japan Guide

The manufacturing sector is likely to remain a key focus for private equity firms in Japan, with many companies in this industry seeking to modernize and increase efficiency. However, there are also opportunities in other sectors, such as technology and healthcare.

ESG considerations are also becoming increasingly important in the private equity industry, and this trend is expected to continue in Japan. Private equity firms will need to take into account the environmental and social impact of their investments, and ensure that they are aligned with the values of their investors.

Overall, the future outlook for the private equity market in Japan is positive. With a growing economy and increasing globalisation, there are many opportunities for private equity firms to invest in Japanese companies and help them achieve their growth goals.

Frequently Asked Questions

What are the top private equity firms in Japan by AUM?

According to Crunchbase, the top private equity firms in Japan by AUM include Advantage Partners, Japan Industrial Partners, and Unison Capital. These firms have a proven track record of successful investments in various sectors, including healthcare, technology, and consumer goods.

Who are the key players in the Japanese private equity industry?

The Japanese private equity industry is dominated by local players, such as Advantage Partners, Japan Industrial Partners, and Unison Capital. However, international firms like Blackstone and Carlyle have also made significant investments in the country.

What is the investment focus of Japan Industrial Partners?

Japan Industrial Partners focuses on investing in underperforming or distressed companies in Japan. The firm aims to improve the operational efficiency of these companies and create value for its investors.

How has SoftBank impacted the private equity landscape in Japan?

SoftBank has been a major player in the Japanese private equity industry. The company's Vision Fund has made significant investments in technology companies in Japan and around the world. SoftBank's investments have helped to drive innovation and growth in the Japanese economy.

What are some notable deals completed by Tokyo Private Equity?

Tokyo Private Equity has completed several notable deals in Japan, including the acquisition of Japan Asia Group, a leading provider of construction and engineering services in Asia. The firm has also invested in companies in the healthcare, technology, and consumer goods sectors.

What sets Advantage Partners apart from other private equity firms in Japan?

Advantage Partners is known for its hands-on approach to investing. The firm works closely with management teams to identify growth opportunities and improve operational efficiency. Advantage Partners also has a strong track record of successful exits, which has helped to build its reputation as a leading private equity firm in Japan.

Top Private Equity Firms Japan - Japanese Private Equity Funds