Target areas are where we have bases (Japan, other Asian countries, and the US). Ventures with greentechs or web-related technologies account for the largest of portfolios. Guided by an investment policy of nurturing growth from small beginnings, we place importance on the quality of entrepreneurs and on the innovative nature of businesses, and we contribute to their growth based on our know-how developed over the years.
Some of the teams manage the corporate venture capital funds, which had pursued not only financial performance but also the realization of strategic alliances of ventures and large companies.

In October 2000, we jointly established Japan Private Equity Co., Ltd. (JPE), with Nihon M&A Center Co., Ltd. JPE primarily invests in companies that are spinned off from the listed company by restructure of divisions or subsidiaries, and in outstanding medium-sized companies and SMEs that have management succession issues and net sales between 1,000 million and 20,000 millions of yen. The types of transactions used include MBOs and management buy-ins (MBIs).

Recent changes in the economic environment have led financial institutions to reduce cross-shareholdings and prompted companies to remove assets from balance sheets. These factors and the maturation of the venture capital industry have fueled the expansion of the private equity secondary investment market. In our secondary investment operations, we seek to capitalize on many years of investment experience with unlisted companies, as well as on our network and expertise.

Since establishing a team of specialists in April 2001, we have forged ahead of other financial institutions in providing financial support to companies undergoing legal restructuring. In restructuring finance operations, we constantly seek to deepen our involvement in the restructuring company’s management. Our clients include firms wishing to reorganize their business through legal restructuring as well as those that need to implement business reconstruction. Targeting these, we provide comprehensive finance schemes that incorporate investment components. During the period under review, we implemented an MBO at PT. Kanebo Indonesia Textile Mills as we continued to build on our successes by capitalizing on an operating base built over a period of more than 15 years in Japan and other parts of Asia.