The Company's basic policy is to expand profits by promoting our growth strategies and to improve capital efficiency by reducing net assets, with the aim of enhancing corporate value that leads to increased profits for shareholders.

Promotion of Growth Strategy and Improvement of Capital Efficiency

Promotion of Growth Strategy

We have positioned the following as the axes of our growth strategy.

• Further improve the performance of funds by enhancing investment management capabilities
• Increase the fund size through stronger external fundraising capabilities in line with expansion of target markets
• Strengthen the organizational foundation that supports the above efforts

Improvement of Capital Efficiency

While gradually increasing the size of new funds in line with the growth of target markets, we will aim to reduce our ratio of investment in new funds from the current level of approximately 40% down to 20% in 10 years. Accordingly, we plan to gradually reduce the necessary funds for business continuity (currently around ¥60 billion) in stages and consider shareholder returns for any excess funds.

By improving capital efficiency through the above measures, we will aim to increase the total return ratio including share buybacks to 60–100% or higher and ROE to 15–20%.

Shareholder Return Policy

Our basic dividend policy is to pay "the greater of 6% of shareholders' equity (initial and term-end average value) or 50% of net income."

In addition to the above dividend policy, we will reduce the necessary business continuity funds of approximately ¥60 billion (after deducting interest-bearing debts, accrued taxes, and expected dividend payments at the end of March of each fiscal year) in stages and allocate any excess funds to shareholder returns.

It is crucial that we consistently implement initiatives to enhance corporate value in our line of business, since it takes time to see tangible results . Meanwhile, we must also make timely and appropriate adjustments in response to the progress that we make each fiscal year. By finding a balance between continuity and flexibility, we will strive to achieve our medium- to long-term targets.

In order to understand the market environment as it relates to both venture and buyout investment, we believe it is important to have a grasp of the startup and private equity market landscapes.