Japan private equity deals in 4 charts

Private equity carve-outs of Japanese conglomerates has lifted Japan deal flow to a record $23.9bn in 2017.

Bain & Company has revealed in an October report that 2017 is set to be a post-Global Financial Crisis record year for deal activity in Japan. Corporate divestitures have boosted overall deal value, with acquisitions by global firms Bain Capital and KKR alone accounting for more than $20 billion.

Yet, despite the increase in capital flow Bain’s research, Japan Private Equity 2017, also found firms targeting larger deals in Japan will face a number of challenges. Firstly, competition for companies valued at over ¥25 billion ($223 million; €190 million) is intense as private equity often battles Japan’s larger corporate sector for deals. The Japanese market is also a highly fragmented universe of corporate sellers, making it difficult for private equity firms to target specific corporate sellers or industries.