- Investment Approach
Based on our core concept “Cross Border”,
we adopt 2 Investment Approaches and 5 Investment Solutions.
Our investment approach is started by forming a hypothesis of simple but specific growth based on macro trends.
While it is said that Japan is a mature society and its additional growth capacity is limited, by utilizing the abundant business resources existing in Japan, there is definitely room for the creation of new growth based on a cross-border approach and a new eco system based on concepts that break through preconceived ideas under circumstances where macro trends are changing.
There will be excessive competition if the barrier to entry is low, but if the barrier is contrarily high, there is a huge business opportunity on the other side that can only be acquired by those who are able to break through the barrier.
We hope to locate such barriers and opportunities before others.
If there is no service provider of a certain service when there should be demands in terms of macro trends, there is always a reason. The reason may be the issue of restrictions, pressure from existing competitors or simply lack of creativity. Otherwise, the reason may be that the leader has a reclusive tendency or there is no reliable partner on the outside.
But if such psychological and topographical barriers can be overcome by teaming up with the right people and adopting a proper approach, we consider this to be a great potential and will offer support for cross-border growth as a financial partner.
Through investment, we are offering two types of approaches to business companies and investors.
We will become the equity holder of companies in their growth stage and companies in their succession stage, and increase the returns to investors by visualizing the growth and future of business and improving the corporate value together with the management team.
We will stably provide returns to investors by focusing on the cash flow that is paid as consideration for the use of items, and creating a system (financial product) capable of reliable receiving such cash flow.
Our group's growth investment strategy is to invest in growing businesses beyond existing frameworks, and we have produced strong results. We are primarily focusing on the following factors.
Our group is making mid- to long-term investments in companies that may become key players based on the foregoing perspective, and providing continuous support in terms of both funding and operation which will not be affected based on temporary changing situations.
Due to the investment cycle of various investors, there are cases where stable prime assets and prime businesses are traded inexpensively. Our group is leveraging the network of our group companies to find such opportunities through our unique sourcing ability, and making value investments concentrating on investment assets involving cash flow such as loan claims and real estate.
By amicably acquiring companies with potential business value, we will aim to promote management reform together with the management team of the investee and achieve the growth and improve the corporate value of the investee company. In particular, our group will aim to improve the corporate value by presenting a new growth scenario utilizing the network and resources of our group companies.
Our group is optimizing the returns from real estate investment in light of the growth phase and economic environment which differ in each region.
In the Asian growing market, by anticipating the expansion of the Chinese domestic consumer market and the growth of the lease office building market in Beijing, we quickly invested in a large Grade-A office located in the Central Business District. Our group has performed adequately such as by Spring Asset Management Limited, our subsidiary, managing and operating Spring REIT listed on the Hong Kong Exchanges and Clearing.
Even in Japan and other mature markets, we are also taking the approach of value investment and cash flow investment strategies.
Through fund investment in prime assets in which stable cash flow can be expected; for instance, by investing in social infrastructures, business real estate and aircrafts, we are proving mid- to high-return financial products to investors. In order to ensure stable returns, the asset management system is an important factor in addition to the type of asset, and we are teaming up with global franchises and partners with reliable track records in various business sectors to discover investment opportunities and manage investments.
While we carried out our cash flow investment strategy integrally with our real estate investment strategy in the past, going forward, we will reinforce this as an independent strategy in order to provide stable investment opportunities to a wide range of investors both in Japan and foreign countries.