Japan’s largest business lobby, Keidanren, has invited activist investor Elliott Investment Management to a private meeting on March 5 to discuss corporate governance issues, according to a notice seen by Reuters and shared with its member firms.
Elliott has recently acquired stakes in several major Japanese companies, including Toyota Industries (6201.T), Tokyo Gas (9531.T), Kansai Electric Power (9503.T), and Sumitomo Realty & Development (8830.T), all of which are members of Keidanren.
The uncommon meeting highlights the growing influence of shareholder activism in Japan, as Keidanren—a cornerstone of the corporate establishment—seeks direct dialogue with one of the world’s most powerful hedge funds.
An Elliott portfolio manager responsible for Japanese equities is expected to outline the fund’s investment strategy and approach to engaging with companies, followed by what the notice described as “a frank exchange of views.”
“We believe it is important to deepen our understanding of activists’ investment policies and areas of focus, while also helping them understand how Japanese companies approach corporate governance,” Keidanren said.
Keidanren confirmed the planned meeting in response to Reuters’ request for comment but declined to provide further details. Elliott could not be reached immediately for comment.
Interest from activist investors in Japan has grown amid recent governance reforms, regulatory pressure for improved capital efficiency, and perceived stock market undervaluation.
According to IR Japan, there were 75 activist firms operating in Japan in 2025, up from just 10 in 2015. Investments by activist firms in Japanese equities have surged to 13 trillion yen ($84 billion) by 2025, increasingly targeting large, blue-chip companies—many of them Keidanren members—rather than just small or mid-sized firms.
At the same time, concerns within Keidanren are rising that some shareholders’ focus on short-term profits could discourage long-term growth investment and lead to uniform demands that do not fully consider the conditions of individual companies.
In policy proposals submitted to the government in December, Keidanren emphasized that companies should ensure fair value distribution to a broad range of stakeholders—including employees, business partners, and local communities—not just shareholders.
The government is planning to revise the corporate governance code later this year.
($1 = 154.7600 yen)