INVESTMENTS POLICY
INVESTMENT POLICY
INVESTMENT
POLICY
01Growth Investments
- Type：Growth funds for companies aiming to go public in the next few years
- Ownership ratio: Within 10% in principle
- Investment size from fund:0.5-2.5 billion yen
02Buyout Investments
- Type：Business succession, turn around, secondary transactions from other PE funds
- Ownership ratio: Over 50%
- Investment size from fund: 1-5 billion yen
03Innovation
Investments
- Norinchukin Capital aims to solve the challenges of the primary industries and local communities through providing seed and early-stage investment to domestic and foreign startups related to agriculture, finance, lifestyle, and revitalization of local societies, through collaboration with JA, JF and Jforest Group.
INVESTMENT PROCESS
INVESTMENT
PROCESS
(Growth Investments & Buyout Investments)
Sourcing /
Preliminary analysis
Responding to consultations from business owners and managers, as well as introductions from financial institutions and M&A intermediary companies, Norinchukin Capital conducts initial considerations for the investment. Based on industry analysis, etc., we may approach companies directly.
Due diligence /
Investment decision
making
Norinchukin Capital tries to understand the strengths and potential of companies through interviews with owners and top managements, detailed research on the industry and companies, and due diligence in collaboration with external experts.
Based on them, Norinchukin Capital will collaborate with management to formulate a medium- to long-term business plan, and the final decision will be made by its investment committee.
Monitoring /
Growth support
In close cooperation with the management, Norinchukin Capital monitors the progress of the business plan, support the recruitment of human resources necessary for the portfolio companies, introduce new customers and suppliers, and formulate various action plans. Norinchukin Capital will do its best to maximize the portfolio companies’ potential and achieve their sustainable growth.
In the case of a buyout investment, the general investment period is assumed to be about 4 to 6 years.
Exit
Based on the assessment of the appropriate exit timing, while respecting management’s intentions, Norinchukin Capital will consider exit option from various perspectives, such as stock listings and share transfers to other companies, in order to contribute to the company’s future growth.
INVESTMENT SUPPORT
INVESTMENT
SUPPORT
(Buyout Investments)
Supports for
Business expansion
Utilizing the extensive network and information of Norinchukin Bank group, Norinchukin Capital supports business expansion of portfolio companies by introducing new customers and suppliers, promoting DX, improving operational efficiency, and proposing new businesses. In addition, Norinchukin Capital will support the selection and execution of business alliances and M&As.
Supports for
strengthening
organizational
capabilities
Norinchukin Capital works closely with business owners and managers to support the formulation of medium to long term business plans for corporate growth and the formulation of various action plans for their realization.
In addition, Norinchukin Capital supports the creation of internal systems such as board management systems, internal approving systems, other internal rules, recruiting and evaluation systems, and financial and accounting systems.
Supports for
recruiting human
resources
Utilizing Norinchukin Bank group’s network and recruiting agencies, Norinchukin Capital works together to support the recruitment for corporate development. In the case of the business succession, if it is necessary to invite a new manager from outside, Norinchukin Capital will support it.