Key Management Policies
The JAFCO Group’s management philosophy is “value creation through private equity”. We will strengthen our profit base and contribute to the development of the global economy through the implementation of a “private equity value chain”.
Medium-to-long-term Management Strategy
The JAFCO Group aims to increase profitability and achieve sustainable growth by building a profit base capable of embracing changes in the operating environment through the implementation of the four-stage “private equity value chain” as outlined below.
Private Equity Value Chain
1. Creation of risk money
2. Intensive investment in carefully selected companies
3. Business development support
4. Promotion of suitable exits
The first stage is the creation of risk money through the establishment of new funds (investment partnerships). Access to a large pool of investment funds is essential to capturing various investment opportunities in the drastically changing PE market.
The second stage is the implementation of intensive investment in carefully selected companies. This involves building a portfolio through selective investment in high-potential companies of various sizes and growth stages, including incubation investment, investments in venture and midsize companies, and buyout deals.
The third stage involves boosting the corporate value of investee companies. Through our proactive involvement in the management of investees, we provide support for boosting corporate value and building a business base.
The fourth stage is increasing capital gains through IPOs, M&As and other suitable exits of investee companies, which are the result of the virtuous cycle that has been created through our private equity investment activities.
Further, the JAFCO Group will build a global portfolio capable of addressing changes in the market environment by carrying out well-balanced investment activity through our tri-polar bases in Japan, the US and Asia. We will strengthen cooperation among our global investment bases and provide support for cross-border operations, capital tie-ups, expansion of sales channels, etc.
The JAFCO Group aims to achieve steady growth in fund performance, while implementing the above strategies based on an efficient cost structure.