Citigroup appoints former Nomura executive Kiyota and insider Nagasaka as joint heads for investment banking in Japan.
In the vibrant landscape of global business, Japan's M&A market is making headlines with an unprecedented surge in activity. According to recent reports, deal volumes in the first half of 2025 have exceeded $232 billion, marking a threefold increase compared to the previous year[1]. This boom is primarily driven by the technology sector, where domestic and inbound tech deals have soared by over 3,400% in Q1 2025, fueled by the global AI revolution[1].
One of the key factors contributing to this surge is corporate de-leveraging. Japanese firms, with strong balance sheets supported by years of profit retention and low interest rates, are engaging in aggressive M&A activity[1]. Private equity (PE) capital deployment is another significant driver, as PE firms are actively pursuing undervalued Japanese assets, particularly non-core business carve-outs, amid improved corporate governance reforms[1]. Furthermore, a weaker yen has made outbound acquisitions more expensive, favoring domestic and inbound deals[1].
Japan's M&A market is also benefiting from regulatory reforms, increased shareholder activism, and a motivated international investor base, making it a hotspot for strategic investment, particularly in sectors like tech, infrastructure, and healthcare[2].
Amidst this thriving market, Wall Street banks are increasingly expanding their presence in Japan. While specific activities of these banks are not yet detailed, the context suggests that top-tier global investment banks are likely deepening their engagement in Japan by increasing advisory roles and capital deployment strategies to capture deals in this fertile environment. This expansion would typically involve establishing or boosting local teams specializing in Japan’s sectors seeing rapid M&A growth, advising on inbound and domestic M&A transactions, especially tech sector deals driven by AI, collaborating with private equity firms active in Japan to facilitate take-privates and carve-outs, and leveraging cross-border deal expertise as Japanese firms seek strategic acquisitions in Asia and beyond[3].
Citigroup Inc is one such bank that has recently made strategic moves to strengthen its investment banking operations in Japan. Masuo Fukuda, who currently serves as vice chair of Citi Japan, will assume an expanded role as vice chair for Japan and Asia North investment banking, retaining his existing position. In addition, Akira Kiyota, who was most recently senior managing director and global head of mergers and acquisitions at Nomura Holdings Inc, has been hired by Citigroup as co-head of investment banking for Japan[4]. Taiji Nagasaka, who currently serves as Citigroup's Japan head of investment banking products and equity capital markets, has been promoted to co-head of investment banking for Japan[4].
These appointments and hires at Citigroup are part of a broader trend of firms expanding their presence in Japan to capture opportunities in the world's fourth-largest economy. Many firms are adding senior bankers to their Tokyo operations, recognising the potential in Japan's booming M&A market[5].
Sources: [1] Nikkei Asia, 2025 [2] The Japan Times, 2025 [3] Financial Times, 2025 [4] Business Insider, 2025 [5] Reuters, 2025
The surge in Japan's M&A market is attributed to a combination of factors, including corporate de-leveraging, increased PE capital deployment, a weaker yen, and regulatory reforms. For instance, Citigroup Inc has recently strengthened its investment banking operations in Japan by appointing Masuo Fukuda, Akira Kiyota, and Taiji Nagasaka, aiming to capitalize on opportunities in Japan's flourishing finance sector.
