Purpose
Fueling perpetual growth; investing in bold visions
With years of investment experience, we have consistently invested in the new challenges of companies and entrepreneurs, based on our conviction that continued investment helps create a sustainable society. As issues surrounding the global environment and the global economy become increasingly complex, we will create a cycle of new growth and contribute to the realization of a sustainable society by making bold investments in challenges that create new value and committing ourselves to their growth.
See our corporate philosophy
Business Model
Business Model
JAFCO engages in venture investment and buyout investment through fund management. We invest in unlisted securities by channeling capital gathered from investors into funds. Based on our policy of highly selective, intensive investment, we aim to improve investment performance (MOIC*) by continuously seeking out and investing in promising companies. After investment, we enhance management involvement and increase the corporate value of our portfolio companies to achieve exits (sales) through IPOs or trade sales such as M&A.
Our three main sources of income are management fees and success fees derived from fund operations and capital gains on direct investment in funds. We aim to maximize profits by expanding our fund size in line with the market and achieving high MOIC.
*MOIC (multiple on invested capital) : Revenue from operational investment securities ÷ Cost of operational investment securities
Our Three Sources of Income
Our three sources of income are fund management fees earned as fees relative to the capital commitments made by our limited partners into our funds, success fees earned on the funds’ returns, and capital gains derived as returns from our own investments in the funds.
We will work to increase MOIC (investment management capabilities) and funding from our limited partners (fundraising capabilities), which are the key drivers for sustainably increasing our income.
Our Two Business Domains
Our two business domains are venture investment, which is our founding business, and buyout investment, our second pillar.
By holding asset classes with differing characteristics, we can mitigate the impact of market influences and promote operational stability.
Going forward, we will focus on maximizing the potential of both venture investment and buyout investment and combining their respective strengths, while also establishing a unique organizational foundation with the aim of achieving an even greater level of performance.
See investment performance
Business Process
Our basic business process starts with fund formation. Fundraising for our domestic flagship funds is led by the Fund Management Division, which collaborates with the Investment Division and Business Development Division to engage with potential corporate investors.
We assemble teams that are optimal to each investment—primarily with our Investment Division and Structured Investment Division—and provide comprehensive growth support from the deal-sourcing stage to exit.
Depending on the company’s growth stage, these dedicated teams support recruitment, marketing, sales, back office formation, and IPO preparation to enhance the corporate value of portfolio companies.
Fund Formation
Establishing funds that are attractive to investors as financial products
-
Funds are formed about once every three and a half years at an appropriate size given market conditions
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Promoting the expansion of the risk capital market by strengthening relationships with existing investors and developing new investor segments
Fund Management
Fund
Manage-
ment
We uphold our principles, ensure transparent management, and respond to the needs of our limited partners in order to establish robust trust-based relationships.
Learn more
Venture
Investment
With a highly selective, intensive investment approach, we primarily target promising seed and early-stage startups and actively engage in their management.
Learn more
Identifying investments
Investment decision and execution
Portfolio company support
Exit
Buyout
Investment
In addition to traditional buyout investments, we conduct “venture buyouts,” proactively supporting the growth of portfolio companies.
Learn more
Sourcing
Execution
PMI
Exit
Business
Development
Active support in enhancing corporate value drawing on specialized expertise according to the growth stage of the portfolio company
-
Recruitment
and organization
building -
Marketing
and sales -
Back-office
developement
Learn more
JAFCO's Strengths
Our Three Sources of Value
JAFCO's strengths lie in its investment management and fundraising capabilities, as well as in the organizational foundation that supports these activities.
Our two key drivers of profit growth are our ability to achieve a high level of performance by identifying investment opportunities and contributing to corporate growth, and our ability to raise funds from external sources by building relationships of trust with our investors and attracting new ones.
Investment management capabilities and fundraising capabilities mutually influence one another, so it is important to continuously improve both capabilities in line with market expansion.
Underpinning these two key drivers is our robust organizational foundation. Establishing and passing on systems and culture as an organization, rather than relying on specific individuals, makes it possible to improve our ability to reproduce successes.
By leveraging these three strengths as sources of value, we are generating stable earnings and fueling perpetual growth.
Investment Management Capabilities
We promote highly selective, intensive investment while continuously refining both our organizational ability to share, gather, and complement the experience of individuals and the ability of our investment professionals to contribute to the growth of portfolio companies.
Fundraising Capabilities
In fundraising and fund management, we will work to enhance our regular reports and offer support tailored to the individual needs of investors. By continuously raising our level of discipline and transparency, we will deepen our relationships of trust with existing investors while working to attract new ones.
Organizational Foundation
Our strengths lie in our unique model for recruiting and training new graduates to become investment professionals and in our culture of passing on know-how. In addition, with our dedicated divisions for supporting portfolio companies and managing funds, as well as our robust compliance and risk management system, we contribute to reproducing successful performance.
JAFCO in Numbers
Investment Management Capabilities
New contacts made by our investment professionals in FY March 2025
3,855 COS
Cumulative IPOs
1,039 COS
Average exit multiple (5 years)
2.2 ×
Number of investment professionals in Japan
65
*As of March 31, 2025.
Fundraising Capabilities
Cumulative funds under management
¥1.2 trillion
Current funds under management
¥458.4 billion
External capital commitments
¥198.5 billion
Size of most recent fund
¥97.8 billion
Ratio of venture investment to
buyout investment
2:1
Cumlutive number of fund investors
About 1,300
*As of March 31, 2025.
Organizational Foundation
JAFCO's investment track record
52 Years
Number of employees (consolidated)
162
Personnel enhancement
20
Of which, New graduate
5
Investment professionals with 10+ years of experience
65
Of which, Investment professionals with 10+ years of experience
22
*As of March 31, 2025.
Funds (Investment Limited Partnerships)
Track Record
Cumulative funds under management
¥1.2 trillion
Current funds under management (domestic)
¥458.4 billion
*As of the fiscal year ended March 31, 2025. *Figures are based on total capital commitments including funds of overseas subsidiaries.
Composition of Limited Partners in Funds Under Management
SV4
Total commitments to SV4 Series
¥60
billion
(40.0 billion)(40.0 billion) Est. 2013.06
* The figure in parentheses is the amount for domestic investment.
Financial
institutions
institutions
Business
firms
firms
JAFCO
SV5
Total commitments to SV4 Series
¥75
billion
(50.0 billion)(50.0 billion) Est. 2016.06
* The figure in parentheses is the amount for domestic investment.
Financial
institutions
institutions
Business
firms
firms
Others
JAFCO
SV6
Total commitments to SV4 Series
¥80
billion
Est. 2019.06
SV6 is limited to domestic investment only.
Financial
institutions
institutions
Business
firms
firms
Investment trusts,
etc.
etc.
JAFCO
SV7
Total commitments to SV4 Series
¥97.8
billion
Est. 2022.06
* SV7 is limited to domestic investment only.
Financial
institutions
institutions
Business
firms
firms
Pension funds,
investment trusts,
etc.
investment trusts,
etc.
JAFCO
* Most recent capital commitment basis; figures in ( ) show amount for domestic investment
More about our fund managmeent business
Fund Management
Our History
Here is our story of investing through both good times and bad and expanding the market, commitments we have held since the early days of venture and buyout investment in Japan.
Our History
About JAFCO
IR Library
Financial Information
Shareholder Information
Governance
Analyst Report
Report by Shared Research Inc.
