Japan's Private Equity Deals Surge 183% Amidst Asia-Pacific Slowdown

While the total value of private equity deals in Asia Pacific fell to its lowest since 2014, Japan stood out with a 183% increase in deal value, making it the largest private equity market in the region for the first time. This growth is attributed to Japan's deep pool of target companies and corporate governance reform pressure. Overall, the Asia-Pacific region saw a decline in deal value, with exits plunging 26% in 2023. Despite the uncertain outlook for exits in 2024, leading private equity funds are exploring alternative asset classes such as infrastructure operations. Japan, India, and Southeast Asia are viewed favorably for private equity investment opportunities in the next 12 months.