Main Concept/
Target Companies |
- Main Concept: Revival of Venture Spirit and Promotion of Business Model Innovation for Revitalizing of Japanese economy
- Target Companies: Japanese mid-cap companies for the opportunities of Business Successions, Carve-outs/Spin-offs and Recapitalization.
- More specifically, companies in (1) Manufacturing with technologies/patents competitive in the global market and (2) Consumer Goods/Retail/Logistics/Services with strong brands or unique business models which have potential to expand into the Asian markets.
- Excluded from our target list: Real estate, Financial Corporations, Venture, Distressed Assets and Overleveraged Companies.
- Leveraged Buyout: Leveraged financing to be actively used.
- Create new corporate value by actively incorporating Globalization and Digital Transformation (DX) into business models using AI, IOT, data analytics, etc.
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Deal Pattern |
- Purchase of the original owner’s shares for Business Succession
- Carve-out/Spin-off of non-core business/subsidiary of large conglomerate
- Going-private transaction for realignment of ownership structure/restructuring of business strategies
- Purchase of the shares owned by a financial investor including other PE fund
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Ownership
Percentage |
- In principle, a majority of voting rights (preferably more than 2/3) is a must
- A minority of voting rights (about 1/3) can be considered if sufficient control on governance and exit strategies are secured through Agreement among Shareholders.
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Target Sectors |
- Diversify the portfolio into the 3 categories below:
- Category Ⅰ : Technologies, Manufacturing, Medical-related
- Category Ⅱ : Consumer Goods, Retail, Restaurant
- Category Ⅲ : IT, Services, Logistics
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Size of
Target Company |
- A corporation or a business division with Enterprise Value of JPY10 billion to JPY100 billion.
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Size of
Equity Investment |
- Number of Investments: About 12 investments per fund for portfolio diversification purpose.
- Equity Amount per Investment: not less than JPY3 billion, target between JPY5 billion to JPY20 billion.
- Co-investment with strategic and/or financial investors to be arranged for large-sized deals.
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Post-Investment
Monitoring |
- Hands-on Involvement in monitoring and value creation effort to maximize the value of the portfolio companies.
- Send in outside directors to work with the existing management of the portfolio company for implementing stronger corporate governance and more effective business strategies.
- Dispatch investment officer on a full time basis for the “First 100 days” to jump start the value creation process if required depending upon the portfolio company’s situation.
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Exit Strategy |
- Exit within 3 to 5 years via trade sale to strategic/financial buyers or IPO.
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