Japan is full of big money moves

Vacation-goers aren’t the only ones flocking to Japan because of the weak yen. Western investors are also trekking to the Land of the Rising Sun. 

What happened: Private equity (PE) giant Blackstone has made a US$1.7 billion bid for Infocom, a Japanese company that operates the immensely popular e-comics platform Mecha Comic. If it goes through, it will be the largest private equity deal in Japan this year. 

• Other massive deals in 2024 include the $333 million privatization of outdoor company Snow Peak and the $835 million privatization of the operator of Japan’s KFC locations.

Why it matters: Foreign money is flowing into Japan at a rapid clip, sparked by the weak yen, a surge in succession planning as founders retire, and shareholder-friendly corporate governance reforms. Last year alone, the country saw a record $35.5 billion in M&A deals. 

• That number is set to continue rising as PE firms ramp up expansion plans. This year, Carlyle Group launched a new $2.5 billion fund for Japanese acquisitions, while Bain Capital said it aims to double its exposure in the country over the next five years.

Zoom out: Japan has also been hailed as the next great frontier to drum up cash as tax breaks and changing attitudes about risky investments open up new opportunities.—QH