Private equity fuels Japan’s $232bn M&A boom as carve-outs and take-privates surge
Japan emerged as the driving force behind Asia’s M&A resurgence in 2025, generating $232bn in deal volume during the first half of the year, propelled by a sharp uptick in private equity activity.
This record figure has been underpinned by a flurry of take-private transactions, corporate carve-outs, and governance-driven divestitures, as Japan’s public companies respond to ongoing management reform and pressure to unlock value.
With ultra-low interest rates and attractive valuations, private equity firms – both global and domestic – have intensified their focus on Japan’s evolving corporate landscape.
One of the most prominent transactions saw Bain Capital acquire a $5.5bn portfolio of non-core retail assets from Seven & I Holdings. The deal is part of a broader wave of Japanese corporates offloading legacy assets, providing fertile ground for PE firms eager to deploy capital into complex carve-outs.
In parallel, private equity buyers are circling larger take-private opportunities. Bain Capital and EQT are among those reported to be evaluating a potential acquisition of cybersecurity company Trend Micro, which carries a market capitalisation of over $8.5bn.
“Carve-outs of non-core assets and take-privates will remain central to Japan’s M&A landscape,” said Yusuke Ishimaru, senior deputy head of M&A advisory at SMBC Nikko Securities. “PE funds are well-positioned to capitalise on this shift.”
The data underscores Japan’s growing strategic importance in the private equity playbook, as funds seek scalable platforms in stable jurisdictions amid global economic uncertainty.