Investment Strategy
Private Equity Investment
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:
- Growing a new business
- Bringing about operational change
- Financing an acquisition
- Taking a public company private
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 compelling case for private equity
- The factors that drive returns in public equity markets have little or no impact on private equity, enhancing private equity’s diversification potential.
- Private ownership enables long-term strategic focus as opposed to the public market focus on quarterly earnings. This “patient” perspective has the potential to generate significant return on investment.
- As a whole, private equity has exhibited attractive performance on both a risk- adjusted and an absolute basis.
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.
2. Drawdown.
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.
3. Distributions.
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.
Public Equity Investment
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.
Investment Records
- Activia Properties Inc.
- Advance Residence Investment Corporation
- AEON Financial Service Co.,Ltd.
- AEON REIT Investment Corporation.
- ALINCO.INC.
- DAIO PAPER CORPORATION
- Daiwa House REIT Investment Corporation
- Daiwa Office Investment Corporation
- Electric Power Development Co.,Ltd.
- Fukuoka REIT Corporation
- GLP J-REIT
- Hulic Co., Ltd.
- Hulic Reit, Inc.
- HEIWA REAL ESTATE REIT, Inc.
- Ichigo Hotel REIT Investment Corporation
- Ichigo Office REIT Investment Corporation
- Industrial & Infrastructure Fund Investment Corporation
- Invesco Office J-REIT, Inc.
- Invincible Investment Corporation
- IRISO Electronics co.,ltd
- Japan Excellent, Inc.
- Japan Display Inc.
- Japan Hotel REIT Investment Corporation
- Japan Real Estate Investment Corporation
- JAPAN POST BANK Co., Ltd.
- JAPAN POST HOLDINGS Co., Ltd.
- JAPAN POST INSURANCE Co., Ltd.
- Japan Prime Realty Investment Corporation
- Japan Logistics Fund, Inc.
- Japan Retail Fund Investment Corporation
- Japan Rental Housing
- Investments Inc.
- KEYENCE CORPORATION
- Kenedix Retail REIT Corporation.
- KENKO Mayonnaise Co.,Ltd.
- Komeda holdingsCo., Ltd.
- KOBE STEEL, LTD.
- Kyoritsu Maintenance Co., Ltd.
- Kyushu Railway Company
- Laox Co.,Ltd.
- LaSalle LOGIPORT REIT
- Mitsui Fudosan Logistics Park Inc.
- Mitsui Fudosan Co.,Ltd
- MITSUBISHI MOTORS CORPORATION
- MORI HILLS REIT INVESTMENT CORPORATION
- MUGEN ESTATE Co.,Ltd.
- Nissin Food Products Co., Ltd.
- The Nisshin OilliO Group, Ltd.
- Nankai Electric Railway Corporation
- NISSIN STEEL CO.,LTD
- Nippon Building Fund Inc.
- Nippon Prologis REIT, Inc.
- Nankai Electric Railway Corporation
- ORIX JREIT Inc.
- Premier Investment Corporation
- Recruit Holdings Co., Ltd.
- Ringerhut co.,Ltd.
- Roland DG Corporation
- SATO RESTAURANT SYSTEMS CO.,LTD.
- Sekisui House Reit, Inc.
- Sekisui House SI Residential
- Investment Corporation
- Senshu Ikeda Holdings,Inc.
- SHIP HEALTHCARE HOLDINGS Co.,Ltd.
- SKYLARK CO., LTD
- Sony Financial Holdings Inc.
- Sony Corporation
- SUMCO CORPORATION
- Sumitomo Mitsui Financial Group,Inc.
- Temp Holdings Co., Ltd.
- TOPCON CORPORATION
- TORIDOLL Holdings Corporation
- United Urban Investment Corporation
- UNIZO Holdings Company,Limited
- YOSHINOYA HOLDINGS CO.,LTD.
- ZENSHO HOLDINGS Co., Ltd.