Our private equity investment strategy is business turnaround. Our concept is to revive or renew an organization through the investment of not only capital, but also human resources, intelligence and knowledge. In the broad sense, private equity means ownership interests or stocks that are not publicly traded on a stock exchange.
In financial terms, private equity generally refers to equity-related finance designed to bring about positive change in a company, such as:
Because private equity returns are achieved through operational improvements and financial restructuring, the experience and leadership ability of the private equity manager are paramount.
The investor’s role : Generally, investing in private equity involves three phases:
1. Capital Commitment.
An investor signs a legally binding agreement to pay a set amount of capital to a fund over a period of time, usually 3 to 5 years.
The fund manager draws down (i.e., "calls") the investor's committed capital in increments as the manager finds attractive investments, typically with notice between 5 and 15 days beforehand.
The investor receives distributions as the manager “exits” investments (i.e., sells or takes the company through an initial public offering). These distributions are usually paid to the investor as cash, but sometimes they can be used to offset future drawdowns.
Our public equity investment strategy is based on underwriting of new shares through public offering and sales. Mainly, we actively purchase newly issued shares of Japanese listed companies through its public offerings and sales, and hold them over the medium to long term. In addition, we conduct low-risk investment management through the medium to long term investment of the Nikkei Stock Average and option trading as well as ETF trading corresponding to the Nikkei Stock Average index.