ITOCHU Corporation (headquartered in Minato-ku, Tokyo; Keita Ishii, President & COO; hereinafter “ITOCHU”), Nomura Holdings, Inc. (Group CEO & President: Kentaro Okuda; hereinafter “Nomura Holdings”) and Sumitomo Mitsui Trust Bank, Limited (President: Kazuya Oyama; hereinafter “Sumitomo Mitsui Trust Bank”) hereby announce the establishment of an internal succession platform investment limited partnership (the “Partnership”), a private equity fund that provides business succession support to officers and employees of small and medium enterprises (“internal succession”) as well as assisting them in growing their business, with the aim of addressing the challenges surrounding business succession at small and medium enterprises in Japan, in particular the social issue of a shortage of successors.

Nomura Research & Advisory Co., Ltd. (President: Yutaka Mogi; hereinafter “Nomura Research & Advisory”) has established an investment limited partnership that will act as the general partner (hereinafter the “GP”) of the Partnership, and will be responsible for the business operation of the Partnership, including sourcing, selecting and executing investments, arranging finance, and providing support for growth following investment execution. ITOCHU and Sumitomo Mitsui Trust Bank endorse this business and will participate as key investors in the Partnership.

In addition to Nomura Holdings, ITOCHU and Sumitomo Mitsui Trust Bank, freee K.K. and Nihon M&A Center Holdings Inc. will participate in the Partnership as limited partners (hereinafter “LPs”) as of the establishment of the Partnership. Looking ahead to the final closing of the Partnership, we will continue our efforts to expand the size of the fund.

In Japan, amid the accelerating population decline and aging, promising small and medium enterprises are facing a shortage of successors. To ensure the continuity of businesses, mergers and acquisitions, such as business integration and reorganization with other companies, have become increasingly common as a means of business succession. At the same time, there are small and medium enterprises that have promising successor candidates within the company but have been unable to realize capital succession due to reasons such as funding constraints. The type of succession supported by the Partnership is this form of internal succession. Rather than to third parties, the Partnership aims to provide a new option that facilitates the long-term transfer of capital to officers and employees already belonging to the company and to build a sustainable management structure.

In addition, by working alongside portfolio companies to drive digital transformation and support business growth, the Partnership will strive to enhance corporate value while contributing to the development of the Japanese economy and society.

Nomura Holdings is a financial services group with an integrated global network. By connecting markets East & West, it services the needs of individuals, institutions, corporates and governments through its four business divisions: Wealth Management, Investment Management, Wholesale (Global Markets and Investment Banking) and Banking.
https://www.nomura.com/jp/index.html

Nomura Research & Advisory, a wholly owned subsidiary of Nomura Holdings, Inc., was established in 2000.It sets up and manages investment limited partnership funds. It invests in private companies in Japan to support smooth business succession and expansion and help them enhance their corporate value.
https://www.nomuraholdings.com/jp/company/group/nr-a.html

Sumitomo Mitsui Trust Bank has adopted “Trust for a flourishing future” as the Group Purpose. Leveraging its comprehensive trust functions and other capabilities, it is working to realize a virtuous circle of funds, assets and capital, and is promoting initiatives to create and expand markets aimed at regional revitalization as well as to generate investment opportunities.
https://www.smtb.jp/