BUSINESS

INVESTMENT CRITERIA

Investment Guidelines

Region	Companies headquartered in Japan
Investment ratio	Acquire a majority of voting rights, and work to increase corporate value responsibly as the largest shareholder
Equity ticket	0.5 to 2.5 billion yen
Enterprise value	1 to 10 billion yen
EBITDA	0.2 to 2 billion yen
Investment styles	Growth investment (re-investment and third-party allotment) based on the owner-manager’s continued involvement Business succession from owner-managers Carve-outs Privatization of listed companies Secondary investments
Management continuity	Not required (re-investment is possible if the former shareholders wish to continue as managers; internal promotions and/or hiring of professional managers are also possible)
Selected investees are	Companies with meaningful investment objectives which will continue to shine even 10 years from now Companies with the vision and corporate culture which can attract talented young people Companies capable of increasing free cash flow Companies that are serious about future corporate growth and the interests of their stakeholders Companies with which we can have in-depth discussions about the direction of future growth

Investment Principles

Ten years into the future

Invest in companies that will continue to
shine in 10 years
Pursuit of robust returns

Pursue robust returns
Meaningful investment

Make meaningful investments
Understand the most

Understand the business better than anyone else
Manageable portfolio

Maintain a manageable portfolio
Improve oneself

Improve one’s own value through investment
Growing people

Contribute to the growth of human resources
through investment

ESG Initiatives

Thorough screening from an ESG perspective for initial investment consideration
Establishment of a system for scrutinizing and reporting ESG risks in the due diligence process
Regular assessment and remediation processes for ESG risks in portfolio companies

VALUE–ADDED PROCESS

Transforming the business model

Strategic investments and business alliances: We carry out the value-up plans, which includes promoting external roll-ups (M&As), developing business partnerships, and formulating a strategic investment policy
Profit structure innovation: We aim to establish a recurring revenue model, while also pushing for a review of pricing and optimization of the cost structure
Development of new products: We actively support the development of new businesses, products, and projects in addition to forming tie-up projects through our own network

Promoting growth strategies

B2C growth strategies: We accelerate the business in terms of e-commerce, branding, promotion, multi-store development, franchising, and operations, collaborating with experts
B2B growth strategies: We promote a shift to solution and push-based sales, centered on the acquisition of new leads through our proprietary network
Promotion of global expansion: We have members with expertise in cross-border EC, overseas sales channel/partner development, JV establishment/M&A with overseas companies, and overseas expansion

Building a growing organization

Enhancement of decision-making capabilities: We strengthen the organizational ability by developing and inviting management personnel for the next generation, and designing their incentives, as well as upgrading KPI management and personnel evaluation systems at the boardroom meeting
DX strategy promotion: We promote the digital transformation of core functions by leveraging ICT to improve internal efficiency and working with experts in AI and data science
Human resource management: We support the creation and advancement of a next-generation corporate culture by recruiting experts in priority areas and strengthening the hiring and retention of young human resources

FOR BUSINESS OWNERS

01. Independent management

We respect your corporate DNA, allowing existing employees to maintain their independence and focus on achieving medium to long-term goals, investing human resources, physical resources, and capital for the company’s growth, and returning the results to the employees

02. Organizational growth

We provide a wide range of support services, including external alliances (M&A and business partnerships), to develop your company into an organization capable of agile growth while securing talented human resources that you would generally be unable to recruit on your own

03. Expanded options

The owner can continue to hold a portion of the company’s shares, allowing for gradual management succession. In addition, the company would have the flexible options for the future, from the expansion of potential strategic partners to IPO

04. Prepared and responsible shareholders

Our young, creative members will commit to medium to long-term management by investing their own funds with determination and responsibility at both organizational and personal level, which will lead to greater chemistry with existing employees