2018

Private Equity Fund Established to Support Small and Medium Sized Enterprises

Jul. 02. 2018
Marubeni Corporation

On June 29th, iSigma Capital Corporation (hereinafter, “iSigma”), a wholly owned subsidiary of Marubeni Corporation (hereinafter, “Marubeni”), established a private equity fund (*1), iSigma Business Advancement Fund III (hereinafter “BAF3”), to invest in and support small and medium sized Japanese enterprises (hereinafter, “SMEs”).

Private equity funds are garnering increasing attention both as solution providers for SMEs and as an attractive asset class for institutional investors. BAF3, following iSigma Business advancement fund II (hereinafter, “BAF2”), will continue to focus on business succession issues, which continue to become increasingly serious in Japan, and also carve-out opportunities (*2) which are growing due to higher corporate governance standards.

iSigma was established in 2000 and has since engaged in the management of four private equity funds. Following the launch of its flagship fund “iSigma Business Advancement Fund” (hereinafter “BAF”) in 2008, iSigma has invested into 12 companies, totaling over ¥25 billion JPY, through BAF and BAF2. BAF2 currently supports 6 companies including Syokukai, a food wholesaler, and Misuzu Life, a beech mushroom producer, both of which were invested into in March 2018.

Marubeni and iSigma strive to support the sustainable growth of SMEs by utilizing the integrated power of the Marubeni group in concert with private equity expertise. Both companies hope to contribute to job creation and the economic growth of Japan, and to offer attractive opportunities for investors.

*1) An investment vehicle which raises funds from investors and then uses those funds to invest into private companies.
*2) Investment opportunities where companies divest a non-core division or a subsidiary to concentrate their resources into core business.

<Outline of iSigma>

Company Name : iSigma Capital Corporation (Notified Business Operator of Specially Permitted Business for Qualified Institutional Investors)
Established : September 2000
Representative : Akihiko Watanabe, CEO & Representative Director
Address : 3-23 Kanda Nishiki-cho, Chiyoda-ku, Tokyo
Paid-in Capital : ¥300 million JPY
Service : Private equity investments and related services
Stockholder : Marubeni Corporation 100%
URL : http://www.i-sigma-capital.co.jp/


<Outline of BAF3>

Name : iSigma Business Advancement Fund III Investment Limited Partnership
Established : June 29, 2018
Size : ¥30 billion JPY (assumed)
General Partner : iSigma Capital Corporation
Fund Term : 10 years

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