Advantage Partners is developing a strategy to invest in Japanese companies protected from foreign takeovers due to economic-security concerns. The firm aims to target listed companies with advanced technologies, valued at over ¥300bn ($1.9bn), which Tokyo might want to keep domestically.

Taisuke Sasanuma, a representative partner, indicated plans to privatize target businesses and work with companies and investors. This patient approach seeks medium to long-term profits by acquiring firms facing inbound investment restrictions. Advantage Partners hopes for support from government-backed groups like Japan Investment Corporation, suggesting that formalizing private capital's role would be beneficial.

The firm expects to complete four or five deals annually, utilizing leveraged buyouts and co-investing. This strategy is supported by a fund that raised ¥300bn ($1.9bn) by May. The move comes amid record M&A activity in Japan and government apprehension about foreign takeovers of strategically important sectors like AI, semiconductors, and defense.