On 28 May 2025, our Head of Japan, Shinobu Miyata, joined a panel of senior voices from across Japan’s fund ecosystem at the S&P Global Market Intelligence annual forum in Tokyo.
The session, “Towards a new era of directly confronting domestic private asset investments”, discussed how local and global dynamics are reshaping the market.
Here are three of the shifts discussed on the ground:
- Japan’s private asset market is expanding; and global investors are watching: Despite a 60% drop in venture capital fundraising between 2023 and 2024, Japan’s broader private assets sector is growing steadily. Fund sizes are increasing, fuelled by domestic momentum and rising overseas interest. At the same time, retail mutual funds are evolving: offering access to unlisted equity and international private equity Fund of Fund structures.
- Global shifts are influencing capital flows, but the picture is complex: Rising interest rates in the US and continued geopolitical uncertainty are prompting caution among global allocators. While talk of capital rotating from China into Japan and India persists, actual movements have been measured. Western markets still dominate allocations, partly due to perceptions of greater access to information and expertise.
- Domestic dynamics are shifting: Although IPO activity has increased, some companies are opting to return to private ownership shortly after listing. Valuation is also becoming more complex, as minority stakes and venture investment structures create new challenges for fund managers and advisors.
Conclusion
The Japanese private asset landscape is entering a new phase: one shaped by shifting investor behaviour, evolving fund structures and accelerating operational expectations. As regulation, valuation and technology continue to evolve, fund managers must navigate increasing complexity while remaining competitive on a global stage.
Langham Hall is proud to support clients across Asia as they adapt to this change and we thank S&P Global Market Intelligence for the opportunity to be part of such a timely discussion.
