NSSK's CEO Jun Tsusaka highlights a seismic shift in Japan's private equity (PE) sector, driven by regulatory reforms and evolving market dynamics. After decades of stagnation since the 1990s economic crisis, Japan's conservative business culture previously limited PE growth. Now, structural changes—including relaxed cross-shareholding rules and increased institutional investor participation—are unlocking opportunities, Tsusaka argues.

The $10 trillion Japanese equity market, once dominated by keiretsu networks, is seeing PE firms like NSSK capitalize on distressed assets and undervalued businesses. Tsusaka notes that deal values have surged 40% since 2020 as foreign capital inflows and domestic liquidity improve. This shift aligns with global trends, positioning Japan as a key Asia-Pacific PE hub.

NSSK, a $3.5 billion AUM firm, has pioneered leveraged buyouts in sectors like manufacturing and tech, leveraging Japan's aging infrastructure and undervalued SMEs. Tsusaka emphasizes that reforms enabling cross-shareholding have reduced barriers for PE to acquire controlling stakes, fostering a more dynamic ownership landscape.

The transformation signals a broader realignment: Japan's PE sector, once an afterthought, now attracts global investors seeking stable returns in Asia's second-largest economy. With regulatory tailwinds and demographic shifts creating exit opportunities, the country's PE market is poised for sustained growth, reshaping its financial ecosystem.