Japan's Private Equity Outlook 2019

Despite a recent trend in the press to focus on economic challenges: whether trade wars, Brexit, or in Japan's case the impact of negative interest rates, and the structural problems posed by an aging population, it is clear that the private equity sector is flourishing, globally. However, there are particular reasons for optimism in Japan.

Although data cited in the press often identifies challenging issues with various industries and sectors, much of the analysis seems to ignore some of the equally compelling statistics in relation to the records being broken in private equity ("PE") and venture capital ("VC"), which gestures towards a bright future. The PE and VC spaces in Japan have been buoyant in recent times, and early indications are that these sectors will continue to grow, and attract increasing investment, both from within Japan and from overseas.

In the view of Walkers partners Thomas Granger and James Gaden, performance, coupled with other trends including broader recognition and acceptance of the asset class, and shifts in labour market perceptions, should see PE and VC take a more significant role in the Japanese economy into the future.

 

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