Japan’s mergers and acquisitions market is expected to remain strong through 2026, supported by larger deal sizes and increasingly sophisticated financing structures involving private capital, according to a report by Reuters citing a Goldman Sachs executive.
David Dubner, Goldman’s global chief operating officer for M&A and head of M&A structuring, said Japanese companies are increasingly using blended structures combining equity, debt, and private credit sourced from long-term capital providers such as insurers.
When paired with investment-grade corporates, these structures can preserve credit ratings and reduce funding costs, expanding the range of viable transactions. Japan M&A deal value reached $315bn in the year to 10 December, the second-highest total in the past 25 years, according to LSEG data.
An example of this approach is the $7.4bn acquisition of Air Lease Corp in September by a consortium including Sumitomo, SMBC Aviation Capital, Apollo and Brookfield, with Goldman Sachs serving as an advisor. The bank has since developed a pipeline of similar deals globally.
