Hello, this is TJ, founder of Alpha Advisors.
We are seeing a sharp increase in inquiries from professionals who say, “I want to restart my career in my 30s” or “I want to be more deeply involved in core management.”
One area attracting particular attention is career transitions into activist funds.

Recently, Dalton’s large stake in Fuji Media and Effissimo’s significant holding in Nissan have been widely reported, among other ongoing cases fresh in memory. Toshiba, Tokyo Dome, Sony, Fujitec, and many other well-known companies have been pressured by “shareholder proposals” to reform management, leading to major changes in shareholder structures and governance systems. Behind this lies structural issues unique to Japanese corporations. Despite holding substantial retained earnings, many companies suffer from low capital efficiency. Parent-subsidiary listings, cross-shareholdings, and weak board independence are viewed by global investors as inefficient, making these companies prime targets for activist campaigns.

So, which activist funds have been investing in Japanese companies, and what kinds of proposals have they made? What schemes have they used, and what results have been achieved? More importantly, what kind of background and skill set do you need to work at an activist fund?

In this article, we will thoroughly explain the reality of activist funds from the following perspectives:

・What exactly is an activist fund?
・Why are they targeting Japanese companies now?
・Notable activist funds in Japan and their landmark cases
・The typical schemes they propose to companies
・The career backgrounds and skills activist funds require
・How to break into a career at an activist fund

If you are interested in activist funds, or if you are aiming for a higher salary and greater career growth, this article is for you. And if you are seriously considering a career in activist funds, be sure to join Alpha Advisors’ free career consultation. Together, we will design a winning strategy!

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3 Reasons Activist Funds Are Targeting Japanese Companies

Understanding “what is happening in the Japanese market” is crucial if you want a career in activism.
In particular, for professionals in their late 20s to 30s who are serious about changing their careers, today’s Japanese market represents “a stage full of extraordinary opportunities.”

First, while Japanese companies are cash-rich, many suffer from low ROE (return on equity). Even though they have abundant liquidity, capital efficiency remains poor. In other words, there is considerable room to enhance shareholder returns by using capital more effectively. For activists, this makes these companies ideal targets for pushing capital policy reforms.

Second, governance issues such as parent-subsidiary listings, cross-shareholdings, and conservative boards remain deeply entrenched in Japan. These structures weaken shareholder rights and transparency, fostering inefficiency and cozy relationships among stakeholders. Activists see these as opportunities for reform. In practice, many have demanded the appointment of independent directors and replacement of management teams.

Third, taken together, these characteristics make Japan a “high-potential, undervalued market” for foreign activists. Compared with mature Western markets, weaker governance in Japan means interventions can have a more immediate impact. Moreover, as Japanese institutional investors and retail shareholders are increasingly aware of governance, the environment is becoming more favorable for activists to drive corporate reform.

Deep Dive: Case Studies and Activist Schemes in Japan

Here, we will examine representative cases where activist funds have pushed for major corporate reforms.
These are more than just case studies—they serve as “career model cases” that can help you picture the kind of work you may want to do in the future.
Each case will be organized into background → scheme → results → impact.
By reviewing these examples, you can gain a clear understanding of how activists actually drive corporate transformation.

Dalton: Proposal for an Outside Director and Share Buyback at Shinsei Bank

Dalton Investments, a long-established U.S. activist fund, is currently known for submitting shareholder proposals to Fuji Media Holdings. One of Dalton’s pioneering cases in Japan was its campaign at Shinsei Bank.
Dalton submitted a shareholder proposal to appoint its founder, Rosenwald, as an outside director. The background was the bank’s low capital efficiency and stagnant corporate value.

At the core of the proposal were two key points: appointing Rosenwald as an outside director with a token remuneration of 1 yen to increase management discipline, and executing a share buyback to return excess capital to shareholders. As a result, Shinsei Bank carried out a buyback worth approximately 20.5 billion yen, strengthening shareholder returns and improving capital efficiency. This case became a prime example proving that activist proposals can tangibly drive management action.

Effissimo: Winning Approval for an “Independent Investigation” at Toshiba’s Extraordinary General Meeting

Effissimo Capital, based in Singapore, is an activist fund specializing in Japanese companies, led by a team of professionals with roots in the former Murakami Fund. Its most impactful case came in 2021, when it successfully passed a shareholder proposal at Toshiba’s extraordinary general meeting.

The background was the invalid voting rights scandal at Toshiba’s 2020 annual general meeting. In response, Effissimo demanded an independent investigation by a third party. In an unprecedented development for a major corporation, the proposal won majority approval. This led to Toshiba’s governance problems being brought to light, followed by management changes including the CEO’s resignation. Effissimo’s campaign marked a symbolic step in governance reform among Japanese corporations.

Oasis: Tokyo Dome TOB and CEO Dismissal at Fujitec

Hong Kong-based Oasis Management attracted attention particularly through its involvement in Tokyo Dome and Fujitec. At Tokyo Dome, amid poor performance and rigid management, Oasis submitted a shareholder proposal that included the dismissal of the CEO. This pressure triggered Mitsui Fudosan to step in as a white knight and conduct a tender offer (TOB). Oasis sold its shares, achieving both the realization of its proposals and a strong return.

At Fujitec, Oasis targeted opaque related-party transactions involving the founding family and demanded the establishment of a third-party committee, dismissal of the CEO, and board renewal. Ultimately, it succeeded in replacing four outside directors through an extraordinary general meeting, bringing about management change. The company’s share price rose steadily, earning high praise from both investors and the market.

Elliott: Governance Reform Proposals and Shareholder Return Demands at Alps Alpine

Elliott Management, one of the world’s largest activist funds, made its full-scale entry into Japan in 2023 by submitting shareholder proposals to Alps Alpine, an electronic components manufacturer. The background was excessive cash reserves and governance opacity stemming from the company’s integration with its parent, Alps Electric. Elliott criticized the structure as minority shareholder value being undermined by a controlling shareholder, and proposed specific reforms, including revising the board composition, significantly increasing dividends, and strengthening investor relations.

Elliott also shaped public opinion through direct dialogue with management and use of the media, gaining a degree of support. Ultimately, the company implemented a dividend increase and a share buyback, strengthening shareholder returns. This was the first full-scale case where a major global activist forcefully engaged with a Japanese mid-sized company, symbolizing the extent to which Japanese corporations may now face global shareholder pressure.

Third Point: Demands for Restructuring at Sony and Divestment of Subsidiary Shares

Third Point, a large U.S. activist fund, has made two major campaigns against Sony. In 2013, it publicly proposed that Sony spin off and list its film and music businesses. Although management rejected the plan, the stock price rose, producing a market impact.

In 2019, Third Point released its “A Stronger Sony” proposal, which included selling subsidiary shares and spinning off the semiconductor division. In response, Sony sold its stake in Olympus, partially reflecting the proposal. These moves highlighted how global activists could pressure even Japan’s largest corporations to rethink their portfolios, offering major lessons for other Japanese companies.

Strategic Capital: Proposals on Executive Pay and Dividends at GungHo

Strategic Capital, a Japan-based activist fund, targeted GungHo Online Entertainment with proposals to fundamentally revise its compensation and capital policies. The background was declining performance after its hit game “Puzzle & Dragons” and high executive pay. The fund submitted proposals at the shareholder meeting demanding disclosure of CEO compensation, introduction of performance- and stock price-linked pay, and large shareholder returns, including a major dividend and share cancellation totaling approximately 17.8 billion yen.

Although the proposals were rejected, they put significant pressure on management and laid the groundwork for future reviews of capital policy and compensation systems. This case serves as a good example of how activists can influence even small- and mid-cap companies.

As these cases show, activist funds are not merely vocal shareholders but critical players driving real changes in governance and capital policy. And many of their proposals push for reforms that benefit not only shareholders, but also companies themselves and society as a whole.
In the next section, we will take a closer look at the schemes they typically propose to corporations.

What Are the Typical Schemes Activists Propose to Companies?

1. Strengthening Shareholder Returns through Share Buybacks and Dividend Increases

The most common proposals involve strengthening shareholder returns through share buybacks and increased dividends. Japanese companies tend to hold large reserves of retained earnings, and many are cash-rich. However, in many cases, these funds are not being used effectively, resulting in low capital efficiency (ROE and ROIC). Activists often propose using a portion of these funds for share buybacks to boost earnings per share (EPS) and enhance corporate value. Alternatively, they encourage companies to increase dividends to provide stable income gains. This is one of the simplest and most feasible measures from an investor’s perspective.

2. Divestment of Subsidiaries and Restructuring of Non-Core Businesses

Another frequent activist proposal is portfolio streamlining and optimization. Specifically, activists encourage divestment of subsidiary holdings or spinoffs of non-core businesses to improve capital allocation and asset efficiency. For example, Third Point demanded that Sony sell shares in listed subsidiaries and spin off its semiconductor division. Activists often propose eliminating or consolidating dual listings of parent and subsidiary companies as well. The aim is to correct market distortions in corporate valuation and improve shareholder value for the parent company.

3. Board Renewal and Governance Enhancement

In many Japanese companies, boards are dominated by internal directors closely tied to founding families or existing management, leaving insufficient external oversight. Activists therefore propose increasing the number of outside directors, revising board composition, or in some cases removing founders from management. For instance, Oasis demanded the dismissal of Fujitec’s CEO, a member of the founding family, and successfully pushed for board renewal. Such proposals to enhance transparency and integrity at the board level help establish a foundation for long-term corporate growth.

4. Reforming Executive Compensation Systems

When executive incentives are not aligned with corporate value, management decisions can become overly conservative or skewed toward private interests. Activists respond by demanding compensation reform to link management incentives directly with shareholder value. For example, Strategic Capital proposed that GungHo introduce performance- and stock price-linked compensation systems and strengthen disclosure. Such measures create an incentive structure that ensures management is committed to maximizing corporate value.

How to Build a Career in an Activist Fund: Required Skills, Backgrounds, and Career Routes

Securing a position at an activist fund requires extremely high levels of expertise and practical experience.
That said, even professionals in their 30s or those without direct experience can reach this career if they follow the “right bridge route.”
In Japan in particular, candidates with backgrounds in investment banking (IBD) enjoy a significant advantage, and most funds focus on recruiting such talent.

Activist work is not simply about making demands of companies. It requires the ability to deeply analyze corporate finance, capital structures, and business strategies, and to present specific, actionable proposals for improvement to both management and shareholders. The following skills and experiences are essential.

Essential Background: Investment Banking Experience

The most valued qualification for activist fund recruitment today is experience in investment banking coverage or M&A advisory (IBD). This is because valuation, financial modeling, capital policy design, and expertise in acquisitions and restructuring are all indispensable to activist campaigns.

Some funds also value experience as a sell-side equity analyst or corporate analyst on the buy-side (asset management), but in all cases, deep financial expertise and investment judgment are prerequisites.

For Those Outside IBD: The Overseas MBA Route

For those without IBD experience, breaking directly into an activist fund is extremely difficult. In that case, the most practical and powerful path is to pursue a top overseas MBA to make the career transition. Activists particularly value candidates who have rigorously studied strategy, finance, and governance during an MBA, while also gaining exposure to investment practice through internships or projects.

A common route is to join an investment bank or private equity fund after an MBA and then transition into activism. At Alpha, we have worked with multiple professionals who successfully followed the path of strategy consulting or corporate roles → overseas MBA → investment banking → activist fund.

Required Skill Set: Financial Analysis, Strategic Thinking, Legal Knowledge, Communication, and English Proficiency

To succeed at an activist fund, the following skills are essential:

・Financial analysis and valuation skills (financial statements, DCF, LBO, etc.)
・Strategic thinking and portfolio analysis (breaking down revenue structures, designing restructuring plans)
・Knowledge of corporate law and governance (shareholder proposals, voting rights, board structures)
・High-level communication skills with management and shareholders (negotiations, open letters, shareholder meetings)
・English proficiency and a global mindset (especially critical for international funds)

Activist funds demand extremely high standards, but in return, the compensation is exceptional. Even at the analyst level, salaries typically range from 15 to 25 million JPY. On top of that, the greatest attraction of activist funds is income from carried interest. Carried interest is the portion of investment profits distributed to fund managers and investment teams. Functioning as performance-based compensation, it can result in payouts of over 100 million to 1 billion JPY or more when fund performance is strong.

The Key Bridge: IBD or MBA

To work at an activist fund, preparation is essential—either by building hard skills and battle-tested experience in investment banking (IBD), or by systematically acquiring knowledge of strategy, investment, and governance through an overseas MBA. Candidates with IBD backgrounds are especially valued, as they already possess foundations in financial modeling, corporate analysis, and M&A advisory, making them immediate assets to activist funds. In fact, many core professionals at leading funds such as Dalton, Effissimo, and Oasis have IBD experience.

For those without IBD experience, pursuing a top MBA is a highly effective route—resetting and upgrading one’s career before entering the activist world. MBA programs provide comprehensive training in corporate finance, strategic investment, and organizational management, while also offering practical exposure through internships at investment banks or private equity funds.

In either path, it is vital to accurately assess your current position and design a reverse-engineered strategy for bridging skill and experience gaps. From your present background, how can you reach an activist fund through the fastest and strongest route? To map out that strategy, take advantage of our free career consultations anytime. We look forward to working with you!

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If You Want to Break into Global Finance or Activist Funds, Talk to Alpha Now!

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