Private equity company EQT has agreed to acquire a majority stake in Japan-based HRTech company HRBrain for an undisclosed amount.

HRBrain describes itself as a SaaS provider tailored to support human resource strategies of companies in Japan facing labor shortages and new regulatory requirements to disclose human capital metrics — engagement, retention, compensation, cost-per-hire, performance, etc.

HRBrain says it’s so far supported more than 2,500 companies to improve talent engagement and management, leading to 60% growth in recurring revenue particularly for its targeted mid- to large-sized companies.

With the capital commitment last week from BPEA EQT Mid-Market Growth Fund, HRBrain plans to further expand its services in HRTech.

“HRBrain is facing strong tailwinds such as the decreasing working population, the acceleration of the shift to job-based employment, and the demand for visualization and disclosure of human capital. We see great potential in further expanding HRBrain’s excellent products and services, and we look forward to leveraging EQT’s technology and software experience to support president Hiroki Hori and his employees as they accelerate HRBrain’s growth,” said EQT Partner Tetsuro Onitsuka.

EQT, founded in 1994 and headquartered in Sweden, is one of the world’s leading investment companies with JPY37 trillion ($252 billion U.S.) in assets under management across Asia, Europe and North America. It’s largely invested in real estate and other companies, but its investment portfolio also includes U.S.-based job site JoinHandshake.com

“HRBrain has helped more than 2,500 companies solve human resources issues through SaaS-type software and consulting services. Going forward, we will continue to form a strong partnership with our new partner EQT and focus even more on promoting digital transformation (DX) in the human resources field and human capital management,” said Hori who will continue to hold minority stake and remain CEO.

Tokyo-headquartered HRBrain was established in March 2016. It has 150 employees.

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