Japanese private equity emerging from its torpor

Hong Kong

JAPAN'S private equity industry, held back by decades of pitiful economic growth and a hostile corporate culture, could see a flurry of activity, with several funds raising capital for deals encouraged by governance reforms and demographic shifts.

Japan's private equity market is small relative to its economy, which ranks third behind the US and China. Private equity buyouts averaged just US$4 billion a year over the past decade, with US$3.7 billion worth of exits annually, according to data provider Preqin. China, by comparison, had US$31 billion of buyouts in 2015 and raised US$34 billion of funds, though its economy is not quite three times larger.