Japanese private equity may be on the cusp of a revival after Prime Minister Shinzo Abe pledged to boost the country’s ailing economy, but the threat of inflated pricing and easier access to corporate borrowing could throw a wrench in the works.

A weakening Japanese yen - on the back of aggressive monetary and fiscal stimuli - is leading to more competitively priced deals in the near term and piquing interest among buyout firms. At the same time, the expiration of the Small and Midsize Enterprise Financing Facilitation Act in late March could drive a greater need for capital among Japanese companies. The Act has helped buoy the credit quality of some companies since its passing in 2009.