Investment Approach

Business Model Innovation

There are many Japanese medium-sized companies which have competitive technologies/products/services but are not performing well due to ineffective cost control or inappropriate business structure which are often caused by legacy constraints both external (clients, suppliers, shareholders, etc.) and internal (founders, managements, supervisors, etc.). Others have not yet realized their full potential bound by past “success experience” and stuck with slow growth/low profitability business and unable to allocate appropriate resources for growth.

Polaris applies the Business Model Innovation (BMI) approach to make the company free from these legacy constraints and help them restructure the business and create new value.

BMI is comprised of the three dimensions: (1) Redefine (Redefinition of Value Proposition), (2) Reconnect (Restructuring of Relationships) and (3) Explore (Swift Application of Practical Wisdom) and Polaris endeavors to create value in its investee companies by applying this approach.

Redefine (Redefinition of Value Proposition)=Identify the fundamental value of the investee, redefine the value proposition for the customer and draw up the growth strategy
Reconnect (Restructuring of Relationships) =Based on the redefined value proposition, sever legacy relationships and build new relationships with clients and partners
Explore (Swift Application of Practical Wisdom) =Apply practical wisdom to day to day operations to create value

Increase of Enterprise Value by Realizing Full Potential of Portfolio Companies

Achieve both Investment Return for the Investors and Mid-term Growth Path for the Portfolio Companies by Trade Sale to Strategic Buyers or IPO in 3 to 5 year from Investment