Business Of Fashion : Adidas Sues Thom Browne Over Use of Stripes

Adidas Sues Thom Browne Over Use of Stripes



The German sportswear brand continues to be aggressively litigious about defending its slanted three-striped logo, filing a suit in New York against the Zegna-owned brand after it said a mediation process that began in November 2020 failed to resolve the dispute.

“Despite Thom Browne’s knowledge of adidas’s rights in the famous Three-Stripe Mark, Thom Browne has expanded its product offerings far beyond formal wear and business attire and is now offering for sale and selling athletic-style apparel and footwear featuring two, three, or four parallel stripes in a manner that is confusingly similar to adidas’s Three-Stripe Mark,” wrote Adidas’ lawyers in the complaint first reported on by The Fashion Law.

The sportswear brand also argued that Thom Browne’s partnership with FC Barcelona since 2018 is another point of confusion for customers.

In 2017, Bloomberg reported Adidas had filed close to 50 trademark lawsuits since 2012, targeting Nike, Skechers, Marc Jacobs and more.

Representatives for Adidas and Thom Browne did not immediately respond to a request for comment.

Business Of Fashion : Can Selfridges Future-Proof the Department Store? Download

Can Selfridges Future-Proof the Department Store? Download the Case Study
Selfridges has attracted a bid from a potential buyer at a $5.7 billion valuation, the latest indication that the department store’s big bet on physical retail is paying off. But after a bruising pandemic year, the British chain could struggle to rebound amid a continued collapse in international tourism and a shift to online sales.

In June 2021, real estate trade publication React News reported British department store Selfridges was considering a sale after receiving an offer from an unnamed potential buyer that valued the business at $5.7 billion. It was an eye-popping figure for a chain with just four stores — even if its real estate alone was estimated to be worth about $2.8 billion — and the latest proof that Selfridges’ approach to retail has made it an outlier in a troubled department store sector.

Since being acquired by the Weston family in 2003, Selfridges has secured a reputation for being one of retail’s most innovative players. As online shopping and monobrand retail grew their share of the fashion market and once-mighty department stores waned, Selfridges bucked the trend by investing heavily in glitzy renovations and immersive, constantly evolving experiences, primarily in its flagship location on London’s busy Oxford Street.

Selfridges leased prime square footage to top fashion brands, while also interweaving these concessions with the retailer’s own wholesale buys to avoid coming across as a generic luxury mall. To this mix, Selfridges added novel pop-ups and a layer of services and experiences, from restaurants and a FaceGym to art installations and a skateboarding bowl. The result was a tapestry of shopping and experience that drew a wide range of visitors — tourists, local office workers and wealthy expatriates alike — to a store that became famous as a social destination, offering a “day out” for clients rather than a place to simply buy things.

Selfridges’ big bet on experiential retail (including a $415 million David Chipperfield Architects-designed new accessories hall) seems to have succeeded in earning the time and attention of consumers and translating this into sales: Selfridges revenues doubled to £853 million ($1.2 billion) in 10 years before the Covid-19 pandemic hit, reflecting a compound annual growth rate of 7.5 percent.

Since the pandemic, however, Selfridges’ model has been tested: its dependence on luxury brands which largely cater to tax-free shoppers from abroad has made it vulnerable to the lengthy collapse in international tourism. Despite significant upgrades to its e-commerce platform, its online business has remained too small to plug the gap in revenues from store closures during coronavirus lockdowns.

Selfridges’ reputation as a social hub worthy of people’s time has helped draw back consumers since stores reopened in the UK in April. Popular food and beverage vendors, brand activations (like a Dior “Riviera” café and pop-up shop on the store’s roof) and a sprawling handbag gallery continue to attract both locals and domestic tourists. The store is integrating new consumption models like resale and rental into its approach in a bid to seduce sustainability- and price-conscious shoppers, and continuing to expand the range of products and services it offers online. But the slow return of key international constituencies continues to pose a challenge to Selfridges’ luxury focused model.

In this BoF deep-dive case study, we look at the strategy that helped Selfridges carve out a position of strength before the pandemic, as well as the challenges the department store currently faces to adapt its model to a radically changed fashion market. We’ll examine what made Selfridges a retail outlier, and whether the store can remain a top performer in the post-pandemic world.

>>> Stoxx 600 Pre-Market Indications

  • BAT (BMT TH) +1.7%
    • BAT Boosts New-Product Investment Ahead of Tightening Regulation
  • Generali (ASG TH) +1.2%
  • Knorr-Bremse (KBX TH) +0.9%
    • Knorr-Bremse Interest in Hella Deal Leaves MS ‘Circumspect’
  • VW (VOW3 TH) -0.8%
    • Porsche’s 35% Discount to VW Stake May Not Be Market Preference
  • IAG (INR TH) -1.1%
  • Porsche SE (PAH3 TH) -1.1%
  • ProSieben (PSM TH) -1.5%
  • EssilorLuxottica (ESL TH) -1.6%
    • Lack of Discount in Essilor/GrandVision Deal a Surprise: MS
  • TUI (TUI1 TH) -1.8%

>>> TradeGate Pre-Market Indications

DAX:
  • VW (VOW3 TH) -1%
MDAX:
  • Nordex (NDX1 TH) +3%
    • Nordex Wins 399MW Order in Brazil
  • Knorr-Bremse (KBX TH) +1.2%
    • Knorr-Bremse Interest in Hella Deal Leaves MS ‘Circumspect’
  • Grand City Properties (GYC TH) +1.1%
  • Fraport (FRA TH) -1.1%
    • European Airports’ Risk-Reward is Less Appealing, Berenberg Says
  • ProSieben (PSM TH) -1.3%
SDAX:
  • SMA Solar (S92 TH) +1.4%
  • Fielmann (FIE TH) +1.2%
    • Fielmann Raised to Buy at Baader Helvea; PT 78 euros
  • SGL (SGL TH) -2.3%

NY Times : The Antitrust Case Against Facebook Crumbles

The Antitrust Case Against Facebook Crumbles
A federal judge delivered a major blow to those trying to shrink Big Tech.

Where a judge says Facebook isn’t a monopoly: in the law
In a major blow to attempts to shrink the power of Big Tech, a federal judge yesterday threw out two antitrust lawsuits brought against Facebook by the Federal Trade Commission and more than 40 states. The judge, James Boasberg, said the federal suit failed to provide enough facts to back claims that Facebook had a monopoly over “personal social networking.” He said the states had waited too long to bring their case, which centers on deals made in 2012 and 2014. The F.T.C. has 30 days to refile its case.
The 53-page ruling is worth a read, given the current debate on what is or isn’t a monopoly. In case you don’t have time, we pulled some of the most telling passages, which provide a clear picture of the hurdles the government has to clear if it wants to take on Big Tech in the future.
The judge said the government failed to establish exactly what Facebook’s market was:
“The market-definition inquiry in this case is somewhat unusual because, unlike familiar consumer goods like tobacco or office supplies, there is no obvious or universally agreed-upon definition of just what a personal social networking service is.”
This is key, the judge said, because the F.T.C.’s case accuses Facebook of shutting out competitors from its market:
“The FTC must do two things here. First, it must provide a definition of PSN [personal social networking] services. Second, it must further explain whether and why other, non-PSN services available to the public either are or are not reasonably interchangeable substitutes with PSN services.”
Most importantly, the judge said the government needed to show not just that Facebook is large, but that its size grants it extra-special power over the market:
“The FTC alleges only that Facebook has ‘maintained a dominant share of the U.S. personal social networking market (in excess of 60%)’ since 2011, and ‘no other social network of comparable scale exists in the United States.’ That is it. These allegations — which do not even provide an estimated actual figure or range for Facebook’s market share at any point over the past ten years — ultimately fall short of plausibly establishing that Facebook holds market power.”
The ruling is a blow to the antitrust movement that is gaining momentum in Washington. The biggest takeaway from the case is this: The monopoly case against one of Big Tech’s key players is out of step with the law as currently written. What needs to be established is whether what Facebook is doing, as defined by the law and rulings in other cases, is illegal. The answer seems to be no.
The judge’s ruling also added evidence for those who say the law is not up to the task of keeping Big Tech in check. Legislative efforts took a step forward last week when the House Judiciary Committee advanced six bills that would overhaul antitrust laws, with the goal of reining in tech giants. But this also puts Lina Khan, the Big Tech critic who now chairs the F.T.C., in a tricky spot. If the F.T.C. amends and refiles its case against Facebook, Khan would need to balance arguments that Facebook is violating law as it currently stands with support for efforts, as she has backed in the past, for Congress to introduce new legal tools.

Wired : A Space Laser Shows How Catastrophic Sea Level Rise Will Be

A Space Laser Shows How Catastrophic Sea Level Rise Will Be
Scientists calculate that by 2100, over 400 million people could live in low-lying, at-risk areas—and that's a conservative estimate.

AN ACTUAL SPACE laser is cruising 300 miles above your head right now. Launched in 2018, NASA’s ICESat-2 satellite packs a lidar instrument, the same kind of technology that allows self-driving cars to see in three dimensions by spraying lasers around themselves as they roll down the street and analyzing the light that bounces back. But instead of mapping a road, ICESat-2 measures the elevation of Earth’s surface with extreme accuracy.

Although this space laser means you no harm, it does portend catastrophe. Today in the journal Nature Communications, scientists describe how they used ICESat-2’s new lidar data to map the planet’s land that’s less than 2 meters above sea level, which makes it vulnerable to the creep of sea level rise. Marrying this data with population figures, they calculated that 267 million people currently live in these at-risk areas. Assuming a sea level rise of 1 meter by the year 2100, they project that 410 million people will ultimately live in an affected zone. Asian countries like Bangladesh and Indonesia are particularly vulnerable, but the United States and Europe will also have no shortage of at-risk populations.

“We strongly believe that if the world is going to be able to deal with sea level rise and to conserve nature in coastal zones—that's an important aspect—elevation must be known,” says study lead author Aljosja Hooijer, a flood risk expert at the National University of Singapore and Deltares, a research institute in the Netherlands.

The paper’s estimates, Hooijer stresses, are conservative on many levels. For one thing, they did it without factoring in explosive population growth in the world’s cities, because of the uncertainties involved in calculating where people will ultimately move. Currently, 55 percent of the planet’s population lives in urban areas, which the United Nations projects will rise to 68 percent by 2050. But this won’t play out evenly—the populations of certain cities may rise faster than others, or even decline.

“The work fills a very big gap that we have at the moment,” says Arizona State University geophysicist Manoochehr Shirzaei, who studies sea level rise but wasn’t involved in this new research. Scientists have good models of sea level rise, Shirzaei adds, “but when you want to quantify the flood risk, you need to know the elevation as well. And that's a big unknown.”

Previously, researchers used satellite radar to map elevations. It works on the same principle as lidar, only it bounces radar off the ground instead of a laser. “The problem with radar is that it can't penetrate vegetation—only a bit,” says Hooijer. “It gets stuck somewhere between the canopy and the soil surface, and the elevation measure that you get is somewhere in between.” Lasers, on the other hand, readily penetrate vegetation, giving a more accurate measurement. (You may have heard about how scientists are using lidar to see through the trees of the Amazon jungle and map ancient ruins hidden below.)

Hooijer found that 72 percent of the population that will be at risk of inundation will live in the tropics. Tropical Asia alone will account for 59 percent of the at-risk area, because the region is particularly low-lying. “It's a huge problem for the developed countries—for Europe and for the States,” says Hooijer. “But if you look at the road map, who are the people who are going to suffer most, and probably the soonest? Those are poor people, mostly that live in underdeveloped zones. It's not given that much attention, that this is really the hot spot. And we were surprised by the numbers ourselves.”

Image may contain: Universe, Space, Astronomy, Outer Space, Planet, Night, Outdoors, Moon, and Nature
The WIRED Guide to Climate Change
The world is getting warmer, the weather is getting worse. Here's everything you need to know about what humans can do to stop wrecking the planet.
BY KATIE M. PALMER AND MATT SIMON

There’s another problem: In addition to dealing with seawater encroaching on their shores, some cities are also sinking. Land subsidence is a phenomenon in which the ground compacts, usually due to the over-extraction of groundwater. Coastal cities are particularly prone to subsidence because of their geology, as urban centers have historically popped up where rivers meet the sea. Over the millennia, a river would have deposited layer upon layer of clay, and the city would have grown on top of it. But as the metropolis taps into the underlying aquifer, this clay collapses like an empty water bottle, and the city can go along with it. The more an urban center grows, the more people it needs to hydrate, which increases the rate and severity of subsidence.

Hooijer’s modeling does take subsidence into account, but it uses a uniform rate of elevation loss—half a centimeter per year—across the world instead of calculating the rate for each coastline on its own. That wouldn’t be feasible. Still, researchers know that some areas are slumping much faster than that: In parts of Jakarta, for instance, the land is sinking by up to 10 inches a year. By 2050, 95 percent of north Jakarta could be underwater, because the land’s elevation is decreasing while sea levels are increasing. The problem is so bad that Indonesia is planning on moving its capital out of the city.

But not all metropolises have come to terms with the subsidence crisis. “Some governments have not admitted to it—that it’s a problem,” says Hooijer. “If you want to make policymakers buy this, you have to be a bit on the conservative side. So we decided to go for a uniform subsidence rate.”

This new modeling is also conservative in that it considers sea level rise but not storm surges, which is the sudden rise in water level during a hurricane or tropical storm. Ever more powerful cyclones will push ever more water ashore. While these temporary surges aren’t the same kind of severe, long-term threat as sea level rise that can overtake a metropolis, “a major storm surge can happen tomorrow, having devastating impacts on communities, but also triggering interventions by the government,” writes climate scientist Jeroen Aerts of Vrije Universiteit Amsterdam in an email to WIRED. “A huge challenge is to make sure these ‘short-term interventions’ after major disasters—Hurricanes Katrina, Sandy, Harvey, etc.—fit into a long-term planning strategy anticipating sea level rise. Unfortunately, this longer-term perspective is often missing.” (Aerts studies sea level rise but wasn’t involved in this new work.)

This new data is meant to provide that perspective. But a shortcoming, says Shirzaei of Arizona State University, is that with a resolution of 5 kilometers (about 3 miles), the data collected from orbit is quite coarse compared to what you’d get from lidar taken from a plane or drone. “Those lidar data have a resolution of 5 or 10 centimeters,” Shirzaei says. “The quality is just amazing.”

But the two sources of data could actually work in concert, says Shirzaei. You could use the satellite lidar to identify particularly vulnerable areas—according to this study, places like Bangladesh and Indonesia—then deploy a plane to map the coast in finer detail.

This kind of data could show which coastal areas could be safely fortified against rising tides, and which are now too dangerous for habitation. Texas, for instance, is considering building a $26 billion barrier to hold back the sea near Houston. In other places, it might make more sense to elevate structures to adapt to sea level rise, Shirzaei adds.

But sometimes an engineering solution just won’t be possible. “Some of the adaptation strategies could be that we just relocate the entire community, because for some reason we cannot defend them using in-place structures like sea walls,” says Shirzaei. This is known as managed retreat, and it’s already happening in some cities. San Francisco, for instance, is giving up part of a coastal highway by replacing two lanes with a trail so the land can better hold back rising waters.

Now, NASA’s orbiting space laser might help policymakers make informed decisions about whether it’s safer to stay or go.

TechCrunch : Toca Football raises $40 million to fuel its budding chain of giant

Toca Football raises $40 million to fuel its budding chain of giant soccer and entertainment facilities

Toca Football, a nine-year-old, Costa Mesa, Ca.-based company that operates 14 sports centers across the U.S. that are focused on soccer training, has raised $40 million in Series E funding to roughly double the number of facilities that are now up and running in the U.S., as well as to open a site in the U.K. that CEO Yoshi Maruyama describes as a “highly themed game-experiences-based dining and entertainment facility focused on soccer training.”

Maruyama knows a thing or two about building destinations to which people gravitate. Before joining Toca — which was founded by the American former soccer player Eddie Lewis (“toca” refers to the first touch of the ball in soccer) — Maruyama spent six years as the global head of location-based entertainment for Dreamworks. He spent 14 years before that as an SVP with Universal Parks & Resorts.

Indeed, he was brought into Toca in 2019 to transform it from a manufacturing business that sells Major League Soccer teams a ball-tossing machine that Lewis had developed, to the services business it has become.

On its face, its new model seems like a pretty smart one, given soccer’s growing popularity in the U.S. According to Statista, the number of participants in U.S. high school soccer programs recorded an all-time high in the 2018/19 season, with more than 850,000 playing the sport across the country.

But Toca isn’t built just for kids, even if kids — and their parents — are its primary customers. According to Maruyama, there are several populations that are coming to its various centers throughout the day. In the morning, the centers feature a curriculum for children up to age six to introduce them to soccer; the afternoons feature largely one-on-one soccer training programs where Toca is able to employ its touch trainer; and during the evenings, Toca operates a leagues business for both children and adults.

Some of the centers are huge, by the way. Among Toca’s newest sites, for example, in Naperville, Illinois, outside of Chicago, it has built a 95,000-square-foot facility that features four indoor, full-size soccer fields, as well as one-on-one individual training spaces. (Maruyama suggests the company has been able to take advantage of a depressed commercial real estate market over the last year or so.)

Little wonder that investors see a big opportunity potentially.

The newest round of funding for Toca comes from earlier investors WestRiver Group, RNS TOCA Partners, and D2 Futbol Investors; they were joined by new investors, including angel investor Jared Smith, the co-founder and former COO of Qualtrics.

The company — which plans to expand into Asia as quickly as possible (China has been mandated by the country’s leadership to become “a first-class football superpower” by 2050) — has now raised $105 million in total funding

>>> What to look at today - 30th of June 2021

Most Asian stocks rose Wednesday after U.S. shares closed at a record on economic optimism and signs that vaccines can counter a highly infectious coronavirus strain. The dollar held an advance.
Australian equities outperformed, shrugging off lockdowns imposed to fight the delta variant of the virus, while Japan and Hong Kong fluctuated. U.S. contracts were higher after the S&P 500 eked out a gain, remaining on track for a fifth monthly advance -- the longest run since August. Moderna Inc. reached an all-time peak after saying its vaccine produced protective antibodies against the delta strain, which has spread around the world since emerging in India.
The dollar has firmed on haven demand due to Covid-19 flareups, a climb that has hurt gold, which is set for the biggest monthly drop in over four years.
Treasury yields were steady as traders digested the latest Fed comments. On asset purchases, Thomas Barkin said he wants to see much more U.S. labor market progress before slowing them, while Christopher Waller said economic performance warrants thinking about pulling back on some stimulus.
US After Hours VTNR +48% jumps on asset sale; ALT -36.5% falls on discontinuing further development of AdCOVID; AVAV -4.9% falls on earnings

Nikkei +0.12% Hang Seng -0.13% CSI +0.58% Shanghai +0.40% Shenzen +0.95%

Eur$ 1.1904 CNH 6.4612 CNY 6.4568 JPY 110.46 GBP 1.3856 CHF 0.9211 RUB 72.7757 TRY 8.7390 WTI$ 73.50 +0.71% Gold 1,759.75 -0.08% BTC 34,900 -1460 ETH 2,115 -105

S&P +0.05% Nasdaq +0.05% EuroStoxx -0.12% Dax -0.07% SMI 0.02%

Macro :
- Northwest Heat Wave Triggers Blackouts and Buckles Highways
- Abu Dhabi Jumps Into Race for Middle East IPO Hotspot: ECM Watch
- Bitcoin Extends Rebound With Chartists Eyeing Bullish Technicals
- Oil Edges Higher as OPEC+ Urges Prudence on More Supply
- Musk Says Starlink to Reach Near Global Coverage by August

Keep an eye on :
- AC FP : France Forecasts 50 Million Foreign Visitors in 2021: Minister
- ANA SM : Acciona’s Renewable Unit Raises $1.57 Billion in Madrid Listing
- AIR FP : Airbus A321 Sale to United Shows 757 Successor Strength: React
- ACH NO : Aker Clean Hydrogen, CapeOmega to Develop Aukra Hydrogen Hub
- BNB BB : National Bank of Belgium to Receive BIS Dividend Again
- BOTHE BB : Bone Therapeutics ALLOB Phase I/IIa Study Meets Primary Endpoint
- IAG LN : IAG-Air Europa Deal Faces Extended EU Probe for Spain Routes
- CPRI US : Capri Rises as Jefferies Says Shares Should Go Much Higher
- CA FP : Couche-Tard 4Q Adjusted EPS Beats Estimates
- CSGN SW : Credit Suisse’s Corporate Banking Head Joyce Latest to Exit Bank
- DIDI US : Didi Is Said to Price U.S. IPO at About $14 Per Share, is said likely to increase side of IPO.
- ENGI FP : Engie Aims to Auction Service Unit in September: Reuters
- EL FP : EssilorLuxottica to Close Acquisition of Grandvision on July 1
- EPR NO : Europris Buys 67% Stake in Lekekassen for NOK501m
- EXS SS : Exsitec Holding Holder Standout Capital I Offers 1.5m Shares
- GIMB BB : Gimv Offers Optional Dividend for FY 2020/21
- GSF NO : Grieg Seafood Sells Shetland Ops to Scottish Sea Farms
- IIA AV : Immofinanz CEO Pecik Steps Down as Holder Sells Full RPPK Stake
- INSR NO : Insr Insurance to Wait With Finalization of Strategic Review
- LBM IM : Labomar Agrees to Buy 70% of Gruppo Welcare
- OR FP : Orpea Boosts FY Revenue Forecast
- SFL IM : Safilo Group to Sell As Much As EU135m New Shares
- OCDO LN : Online Shift to Cut U.K. Retailer Profits by $11 Billion
- PRX NA : Prosus and Naspers Headwind From Mooted 10% JSE Index Cap: React
- SEV FP : Veolia: Filing of Proposed Cash Tender Offer for Shares of Suez
- RWE GY : American Water Delays Closing Date for Sale of New York Unit
- SF3 GY : STS Group Says Adler Pelzer’s Delisting Offer Wasn’t Agreed
- SWTQ SW : *SCHWEITER TECHNOLOGIES: SEE 1Q SALES GROWTH AT LEAST 10%
- FTI FP : TechnipFMC Wins Substantial Contract for Petrobras Fields
- UNI IM : Koru to Buy Up to 24m Unipol Shares via a Reverse ABB: Terms
- VIE FP : Suez Board Backs Veolia Takeover, Subsequent Asset Sale
- VONN SW : Vontobel Buys Remaining 40% of Twentyfour Asset Management

>>> Europe : Brokers Upgrades & Downgrades - 30th of June 2021

>>> Up
* BayWa Raised to Hold at LBBW; PT 35 euros
* CTS Eventim Raised to Reduce at Baader Helvea; PT 52 euros
* Fielmann Raised to Buy at Baader Helvea; PT 78 euros
* Generali Raised to Overweight at JPMorgan; PT 21 euros
* Shell Raised to Neutral at Citi
* Vallourec Raised to Buy at Jefferies; PT 12.80 euros
* Workspace Raised to Outperform at RBC; PT 1,050 pence

>>> Down
* ADP Cut to Hold at Berenberg; PT 115 euros
* Aker Offshore Wind Cut to Hold at SEB Equities; PT 6 kroner
* Cairn Energy Cut to Hold at Berenberg; PT 170 pence
* Fraport Cut to Hold at Berenberg; PT 59 euros

>>> Initiation
* Fastned GDRs Rated New Hold at ING; PT 60 euros
* Inditex Reinstated Neutral at Oddo BHF; PT 31 euros
* Jadestone Energy Rated New Buy at Jefferies; PT 100 pence
* Kahoot Reinstated Buy at DNB Markets; PT 100 kroner
* Poste Italiane Rated New Outperform at KBW; PT 14 euros

>>> Call
* Capri Rises as Jefferies Says Shares Should Go Much Higher
* Lack of Discount in Essilor/GrandVision Deal a Surprise: MS
* European Airports’ Risk-Reward is Less Appealing, Berenberg Says
* Shell Upgraded at Citi on Valuation, Ending Its 4-Year Sell Call
* Vallourec Raised to Buy, Has Upside Risk to Guidance: Jefferies
* Workspace Recovery Potential Ignored, RBC Upgrades to Outperform

WSJ : Private Equity Gears Up for the Siege of Japan Inc.

Private Equity Gears Up for the Siege of Japan Inc.
Private-equity firms are building up a large war chest to target Japanese companies. Toshiba could be on the menu soon.

Private-equity funds have a growing interest in Japan—and are making surprisingly good money there. The scandal at venerable Japanese electronics maker Toshiba could shape up as a test case for just how big the industry can grow in the world’s third-largest economy.

There are no offers publicly on the table for Toshiba, but there is no doubt the company is an attractive target for private equity—especially with management on the back foot after shareholders ousted former Chairman Osamu Nagayama last week. Toshiba had previously dismissed a bid from CVC Capital Partners valuing the company at more than $20 billion, which would have made it the biggest private equity-led buyout in Japan. Activist investors are demanding that management now welcome and encourage interest from potential suitors.

Unlike in the U.S., private equity doesn’t have a big presence in Japan. According to consulting firm Bain, 8% of Japan’s mergers and acquisitions involve private equity, compared with 15% in the U.S. And M&A activities, relative to the size of the economy, are much lower in Japan than in the U.S. or Europe.

But private-equity funds are gearing up to look for opportunities in the country now. Total assets under management in Japan-focused private equity amounted to $35 billion as of September last year, more than double the sum at the end of 2015, according to data provider Preqin. They are now sitting on $14.9 billion of cash. Moreover, a record 80 private-equity and venture-capital funds focused on Japan closed last year, raising $10 billion, says Preqin. Carlyle, for example, raised $2.3 billion for a Japanese buyout fund last year.

Signs of real progress on corporate-governance reform are clearly one factor driving the increasing interest. Shareholder activism has been rising, demonstrated most dramatically at Toshiba. That in turn has driven companies to reassess their business portfolios: Cross-shareholdings have long been common in Japan, but are beginning to be sold off more regularly. Goldman Sachs says Japanese companies made a record 472 restructuring announcements in 2020, a 56% rise from the previous year.

Private-equity funds have picked up such carve-outs from Japanese companies. A consortium led by Bain Capital bought Hitachi’s metal unit for $7.5 billion this year. Smaller family-controlled Japanese companies without a successor also provide another opportunity for private equity.

Japan has been lucrative, too. According to Preqin, the market delivered a median net internal rate of return of 18.2% for funds launched between 2008 and 2018—the highest among all regions. The return on North America-focused funds was 16%.

Nonetheless, private-equity funds generally take a friendlier approach in Japan, compared with the usual stereotype of the financial barbarians at the gate. Facing more assertive activist hedge funds pushing companies to act, Japanese companies see joining with private equity as a more agreeable alternative. Deal-making also tends to be slower. As in the case of Toshiba, private-equity funds won’t rush to jump into the fray publicly.

The barbarians are arriving at the gates in Japan in large numbers but they are in no hurry for a brutal, bloody siege—perhaps because they are hoping the doors will finally be opened politely from the inside.