The consumer sector represented more than a third of total PE deal value in Japan last year as PE dealmaking in the country hit a record high.
$22.5 billion was invested across 253 deals, with B2C investment accounting for 38% of deal value, according to PitchBook data.
Some of the larger B2C deals include The Carlyle Group‘s 94.5 billion Japanese yen (around $636.1 million) take-private of fast food chain KFC Holdings Japan in July and Bain Capital‘s 50 billion yen take-private of outdoor lifestyle brand Snow Peak in April.
With the exception of 2023, the B2C sector has accounted for just under a third of PE investment in Japan over the last five years. And that’s a significantly greater share than in other markets, such as the US and Europe, where consumer products and services typically account for less than 20% of total deal value.
Due to a handful of large-cap deals, the total value of PE deals in Japan this year has already reached $12.6 billion, exceeding 50% of last year’s total.
Among them are the $5.2 billion purchase in February of Shinko Electric Industries by a consortium led by JIC Capital.
Other significant deals include KKR‘s $4.1 billion acquisition of the majority stake in Japanese IT services firm FujiSoft last month.
According to consultant McKinsey & Company, public companies in the technology, media and healthcare sectors generated the best total shareholder returns in Japan during the 2010-23 period, indicating potential room to increase capital allocation in these verticals.
Featured image of Shibuya Crossing in Tokyo by Mlenny/Getty Images
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