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Constructive domestic activism supported by banks and insurers
Against this backdrop, it is not surprising that domestic engagement funds are also jumping on the bandwagon. Japan Activation Capital (JAC), a fund launched in 2024 by a former Carlyle partner, is currently receiving significant attention. While this fund does not fit the classic image of an aggressive activist, it aims to actively influence corporate policy by partnering with management, as exemplified by its first investment into LION Corporation just announced in October.
During its first funding round earlier this year, JAC had raised nearly €800 million from exclusively Japanese institutional investors within a few months. Noteworthy is the list of JAC’s 11 investors, led by major banks MUFG, Mizuho, and Resona, as well as major Japanese insurers. Even more remarkable is the fact that Sumitomo Life, Meiji Yasuda Life, and the Development Bank of Japan issued press releases about taking stakes in this engagement fund — an unprecedented move hinting that change turns to more than just lip service.