Strategic Investment Team

Implementing investments involving support for management, centered on stock in listed SMEs

Most of the enterprises listed on Japan’s stock market are small- to mid-cap (i.e., those with market capitalization of less than JPY 30 billion), the stocks of most of which are undervalued. These enterprises face various challenges today, including lackluster growth in existing businesses and the need to improve financial positions by raising new funds. At the same time, they harbor the potential for significant increase in equity value with appropriate management support, making these companies promising investment opportunities.

The Strategic Investment Team targets investments in enterprises it considers undervalued compared to management resources, companies it believes offer high levels of competitive potential. It makes investments based on the following policies:

  • Its main investment targets are listed companies, as well as unlisted companies offering profit potential similar to listed companies.
  • It builds strong relationships with companies’ management teams and individual stakeholders.
  • It invests in stakes ranging from buyout investments, in which it holds a majority of shares, to private investments in public equity (PIPEs), in which it becomes a leading shareholder (the firm remains listed on the stock market).
    It pursues a broad range of investment opportunities without leaning too heavily toward specific industries. Depending on the investment opportunity, it also engages in joint investments with operating companies and other partners who can help increase corporate value or who can serve as future buyers of shares.
  • After making investments, it provides support to management at the companies it invests in—for example, through business tie-ups, M&As, and growth support—as well as dispatching full-time members of management as needed.
  • It also seeks out exit strategies beneficial to all stakeholders, including sales of stock to strong listed companies capable of helping target companies achieve sustained growth.
Current investments
Company name:
FRACTALE Corporation
Businesses:
Investment in real estate project, and management of real estate.
Investment date:
November 2017
Notes:
Stock acquisition through TOB, Listed on Second Section, Tokyo Stock Exchange (3750)
Company name:
Works Applications Co., Ltd.
Businesses:
Japanese #1 ERP provider offering the AI driven cloud based solution, "HUE"
Investment date:
September 2017
Notes:
NA

Brief career histories of members of the Strategic Investment Team
Tomohiro Fujita
1989 Joined Daiwa Securities Co.Ltd., engaged in sales & marketing
1998 Joined Business Brain Showa-Ota Group, working in investments, corporate management, and investor relations as a business improvement consultant, M&A adviser, and Corporate Planning Office manager
2004 Joined Nikko Antfactory K.K. (now Ant Capital Partners Co., Ltd.) as a partner for strategic investments
2008 Seconded, then transferred to ACA Inc.
2012 Assigned ACA Investments Managing Partner; working on investments in Japan and Asian markets
Yasuhiro Kabata
1980 Joined Mitsubishi Corporation, where he performed investment reviews in the investment review division, private equity investment in the corporate investment division and at MC Capital (New York), and investment-related activities in the retail consumer field in the living essential group.
1999 Joined Wit Capital Ltd. (Corporate Planning), and then Kentucky Fried Chicken Japan Ltd. (as head of the planning office)
2006 Joined Alix Partners as a director, working in corporate turnaround consulting
2007 Joined Advent International Corporation as a senior director and retail consumer sector head
2010 Joined ACA Inc.
Mr. Kabata graduated from the University of Tokyo Faculty of Law and the Anderson School of Management at UCLA.

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