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Japan is enjoying a surge in investments by GPs and LPs, say Bain & Co., Clifford Chance

Good morning, Hubsters. MK Flynn here in New York with the US edition of the Wire.

While PE Hub focuses most of our attention on private equity dealmaking in North America and Europe, from time to time, we explore other regions of the world.

Today, we’re taking a look at Japan – and the rise of investments in Japanese companies from US-based PE firms. Factors including government initiatives aimed at encouraging foreign investment are driving activity there.

We’ll also take a look back our coverage of PE interest in India and Africa.

'Attractive destination'

Japanese companies are increasingly drawing investments from private equity investors, as PE Hub’s John R Fischer reports.

“Strong historical returns and expanding opportunities to take public companies private have encouraged investors and private equity funds to put more money to work,” found Bain & Company’s Asia-Pacific Private Equity Report 2025. The number of active investors in Japan rose 14 percent to 380 in 2024 from the previous year, according to the report.

Bain Capital and KKR have done big deals in Japan lately.

To learn more, John turned to Michihiro Nishi, a Tokyo-based partner of law firm Clifford Chance.

Premium subscribers to the Wire may read an excerpt from the interview as well as more insights from the Bain & Company report.

'Tremendous' investment opportunities

 As I mentioned, PE Hub has been exploring PE investments in other areas of the world.

India has established itself as a compelling investment destination for global private equity giants like Blackstone, KKR and EQT, which are drawn by the country’s vast scale and, in the words of one dealmaker, “tremendous” investment opportunities.

At the end of last year, PE Hub’s Irien Joseph spoke with senior professionals from the three firms’ Asia teams, all based in Mumbai, to uncover the growth drivers that have made the country a top market for global PE firms, as well as the evolution of India’s private equity landscape.

Irien is working on a fresh look at India now and expects to publish that story shortly.

PE Hub’s Obey Martin Manayiti has looked into how Africa’s growing urbanization, population growth and digitization make the continent compelling for some PE investors. Last year, Obey spoke with Marc Stoneham, a partner at Development Partners International (DPI), a London-based private equity firm that invests in companies in a wide range of sectors throughout Africa. Obey also covered the firm’s sale of Kelix Bio to Mubadala Investment Company.

Are there other regions outside North America and Europe where you’re seeing more PE deal activity that you’d like to see PE Hub cover? Send me your suggestions to [email protected]

Tomorrow, Craig McGlashan will bring you the Europe Wire, and Obey will bring you the US edition.

Until then, happy dealmaking,

MK

Read the full wire commentary on PE Hub ...

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Deals

They said it

“The recent surge in investments by GPs and LPs in Japan can be attributed to several factors. Japan’s stable economic environment, coupled with its robust corporate governance reforms, has made it an attractive destination for investors.”

— Michihiro Nishi, a Tokyo-based partner of law firm Clifford Chance on why PE firms are backing Japanese companies

Today's letter was prepared by MK Flynn

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