Establishment of a New Private Equity Fund for Investment in Small and Medium-Sized Enterprises

Oct. 17, 2022
Marubeni Corporation

iSigma Capital Limited (hereinafter, "iSigma"), a wholly owned subsidiary of Marubeni Corporation (hereinafter, "Marubeni"), has established a private equity fund*1 "iSigma Business Advancement Fund Ⅳ Investment Limited Partnership" (hereinafter, "BAF4") to invest in small and medium-sized Japanese companies as of October 14, 2022.

BAF4 will follow the concept of the iSigma Business Advancement Fund ⅢInvestment Limited Partnership (hereafter, "BAF3"), which is currently in operation, and will focus on investments related to business succession, while also working on corporate group carve-outs*2, which are expected to increase due to heightened awareness of corporate governance.

iSigma has been operating its investment fund business by organically combining its experience in investment-related business with the Marubeni Group's trading company functions. Since the establishment of the iSigma Business Advancement FundⅠInvestment Limited Partnership in 2008, we have invested in a cumulative total of 19 companies, with a cumulative total of over 46 billion JPY. The current BAF3 has invested in seven companies thus far.

Marubeni and iSigma will promote the growth and development of portfolio companies and work to increase their corporate value by combining the knowledge and networks of Marubeni, a general trading company, and its Group companies in a wide range of industries with the management improvement methods that iSigma has accumulated through fund management. Through the growth of portfolio companies, Marubeni and iSigma will contribute to the sustainable development of the Japanese economy and provide attractive investment 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.

Overview of iSigma:
Name: iSigma Capital Corporation (Notified Business Operator of Specially Permitted Business for Qualified Institutional Investors)
Established: September 2000
Representative: Hirotaka Hino
Address: Otemachi 1st Square West Tower 2F, 1-5-1, Otemachi, Chiyoda-ku, Tokyo
Paid-in Capital: 300 million JPY
Service: Private equity investments and related services
Stockholder: Marubeni Corporation 100%
Website: http://www.i-sigma-capital.co.jp/english/index.html
Overview of BAF4:
Name: iSigma Business Advancement Fund Ⅳ Investment Limited Partnership
Established: October 14, 2022
General Partner: iSigma Capital Corporation
Fund Term: 10 years