European banks are increasingly making their mark in Japan’s growing buyout financing sector, with France’s BNP Paribas emerging as a leading player in a market traditionally dominated by domestic megabanks, according to a report by the Financial Times.
The trend is increasing competition and helping reduce borrowing costs for PE deals in the country.
Renaud-Franck Falce, BNP’s head of global capital markets, noted that growing demand from European and US clients for Japanese buyouts has fuelled the bank’s expansion into the market. Lending by European banks, including Crédit Agricole and Deutsche Bank, for Japanese acquisitions jumped from zero in 2023 to over $3bn in 2025, according to Dealogic data.
BNP has been involved in major deals that have solidified its position, including Sweden’s EQT acquisition of lift-maker Fujitec for $2.7bn, Bain Capital’s $3.3bn purchase of Mitsubishi Tanabe Pharma, and KKR’s share of the $2.3bn buyout of Topcon, a Japanese optical equipment manufacturer. Last year, French banks accounted for roughly 10% of total buyout lending in Japan, on par with large US banks but still trailing the dominant local institutions.
