Private equity dealmaking in Japan reached a record $47.48 billion across 300 deals last year, yet a survey by sovereign wealth fund Japan Investment Corporation shows most Japanese companies remain hesitant about equity financing. Nearly half of over 1,000 surveyed board members and finance executives rely on internal funds, while 35.5% depend on bank loans, and only 5% to 7% view equity funding as an option. The top concern about PE money is loss of management autonomy, cited by 41.4% of respondents, followed by unfamiliarity with financing methods at 27.4%. Among those who did receive PE funding, 62.5% found it effective, highlighting support in strategic planning, talent recruitment, and operational efficiency. Japanese corporates also strongly prefer domestic buyout funds over international ones, with 13.1% eager for local support versus just 5.1% for foreign funds, even though major deals have been closed by global firms like Bain Capital and Blackstone.
Blackstone Group IncArticle notes global firms like Blackstone have closed major PE deals in Japan, but the survey shows Japanese companies prefer domestic funds, creating mixed implications for Blackstone's future dealmaking.