Regional Q&A: Apollo in Japan – A Bright Future

Japan is entering a new phase of growth shaped by structural change in capital markets, corporate investment and long-term savings needs. In this regional Q&A, Yasuo Kashiwagi shares his perspective on Japan’s reawakening, the evolving role of private capital and how Apollo is supporting corporates, institutions and investors through asset management, flexible capital as well as retirement and wealth solutions

Where are you seeing the most meaningful changes across the financial and corporate landscape in Japan?

Japan has entered a chapter defined by demand for growth, innovation and future financial security. After decades of zero interest rates and low inflation, we are now seeing a swell of wage growth, governance reform and renewed corporate investment spark a reawakening in the Japanese economy. This has changed how management teams think about capital efficiency and long-term competitiveness. Nearly half of TOPIX companies still trade below book value, and more than 40 percent hold net cash on their balance sheets, highlighting both the opportunity and the pressure to deploy capital more productively.⁽¹⁾ What feels most different today is the mindset. The mood is more optimistic, more pragmatic and more forward-looking—it appears we’re undergoing a structural shift, not just a temporary change in tone. 

How are Japanese companies rethinking the cost of capital in this new environment, and where do you see the greatest unmet needs today?

From our conversations with management teams, we’ve gathered companies are broadly taking a step back and reassessing how they fund growth and resilience. Banks remain central partners, but many of the investments companies are pursuing today, whether in advanced manufacturing, digital infrastructure or energy, are long-dated and complex. That creates a natural mismatch with short-duration funding. As a result, we see growing interest in diversifying funding sources and exploring new tools that better align capital with long-term business strategy. Companies are also looking for certainty and speed alongside flexibility. This shift toward more thoughtful capital planning is one of the most important changes underway.

How does Apollo’s integrated approach—across asset management, capital solutions, retirement and wealth—resonate with Japanese corporates, institutions and investors?

Japan places a high value on alignment and long-term partnership, which fits well with Apollo’s approach of investing alongside clients and focusing on value creation. Our integrated platform allows us to engage clients across different needs, whether that is asset management, retirement and wealth solutions or bespoke capital structures. Instead of leading with a product, we start with the objective and work backward to design the right solution. That approach resonates with our Japanese partners that value our creativity, consistency and discipline. It also allows us to work in a complementary way alongside banks, insurers and pension funds rather than in isolation.

Private capital is playing a larger role in Japan’s growth story. How do you see private capital fitting into the Japanese financial ecosystem long-term?

Private capital has become an important complement to Japanese financial institutions. Banks and traditional asset managers continue to play essential roles, but private capital can help fill gaps where greater flexibility, duration or customization are needed. We see this particularly in areas tied to long-term investment and corporate transformation. Private capital can support growth while maintaining an emphasis on stability and quality. When structured thoughtfully, private capital has the capacity to strengthen the overall ecosystem by offering a broader range of solutions and diversifying an economy’s sources of funding. Over recent years, we have seen private capital play an increasingly larger role in Japan’s growth story, a direction of travel we expect to continue.

Demographic change is a defining force in Japan. How is this shaping demand for retirement solutions?

Japan has one of the largest and most conservative savings bases in the world, but years of low yields have made it difficult to generate steady income.⁽²⁾ As our average age in Japan shifts older, it’s natural to focus on long-term income and security.⁽³⁾ Through Apollo’s retirement services business, Athene, we work with Japanese insurers on reinsurance and asset management solutions that help strengthen balance sheets and support retirement products aligned with savers’ needs. Our integrated model is designed to match long-dated liabilities with high-quality, income-generating assets. The goal is to support an honorable retirement by providing income that is resilient, understandable and built for the long term.

Wealth management is also evolving in Japan. What shifts are you seeing among investors, and how is Apollo approaching this opportunity?

We are seeing growing interest among investors in income, diversification and downside protection. After decades in which cash and deposits dominated portfolios, many savers are looking for ways to achieve attractive return per unit of risk while reducing their exposure to public markets that feature increasing concentration risk. ^{(2, 4)} This is true across institutions, family offices and individual investors. Apollo’s role is to help bridge that gap by offering access to private market solutions that focus on stability and long-term outcomes. Education and structure are important here, as investors want to clearly understand how these strategies fit within their overall portfolios. This evolution in wealth management is still early, but the direction is clear.

How do Japanese financial institutions view working with global firms like Apollo, and what makes partnership particularly important in this market?

Partnership and long-term orientation are central to our business in Japan. The business has been embedded in the region for 20 years. Our capital is long duration, making long-term partnership among leading businesses, institutions and investors a natural match. Apollo’s global reach is important, but what matters just as much is how that experience is applied locally. Our disciplined and value-driven approach aligns well with Japan’s focus on quality, stability and a listening-first approach. Over time, trust is built through consistency rather than volume. That is why our local presence and engagement are so important to us.

Looking ahead, how do you see Apollo’s role in Japan evolving over the next decade?

Japan is a long-term priority for Apollo. Though we have been active in the region for decades, we officially opened our Tokyo office in 2019 and have grown our local team to more than 40 professionals. As Japan continues to invest, adapt its capital markets and address long-term savings needs, private capital will play an increasingly important complementary role. Our focus will remain on partnership, supporting corporate growth, strengthening retirement outcomes and helping investors navigate change. We aim to be a provider of capital solutions and safe yield to the Japanese market in this exciting new phase of growth.

Learn More About Apollo Global Management in Japan