JAFCO Group Co., Ltd. (8595) Stock Price

JAFCO Group primarily conducts venture capital and buyout investments through fund management. Fund capital is raised from institutional investors and corporate investors approximately every three and a half years, with a standard management period of 10 years, extendable by an additional 2 years.

JAFCO Group continuously identifies promising companies regardless of fund-raising timing. The group makes new investments on a roughly three-and-a-half-year cycle and builds high-quality portfolios for each fund.

After investment, the group actively participates in portfolio company management and works alongside entrepreneurs to drive business growth and enhance corporate value. The ultimate goal is to achieve exits through initial public offerings (IPOs) or mergers and acquisitions (M&A).

JAFCO Group's primary revenue sources are management fees and performance fees from funds, as well as capital gains from direct investments in funds. The business operates as a single segment: fund management operations.

Jafco Group is pursuing a growth strategy focused on domestic investment, combining venture capital and buyout investment. Through this approach, the company aims to achieve profit growth and a stable revenue structure, thereby enhancing corporate value. In particular, the company will strengthen investment in promising domestic startups and next-generation entrepreneurs, while supporting companies that contribute to solving social issues.

In April 2025, the company decided to concentrate on domestic investment and announced a policy to cease contributions to funds in Asia and the United States. This will allow the company to concentrate resources on domestic investment activities and improve investment performance. Additionally, the company plans to divest its overseas subsidiaries by the end of the fiscal year ending March 2026, thereby strengthening its competitive position in the domestic market.

Jafco Group will enhance selective concentrated investment and active management involvement to promote the growth of portfolio companies. The company will identify high-growth-potential companies at an early stage and invest actively as a lead investor. Following investment, the company will be deeply involved in business development and organizational restructuring to maximize corporate value.

The company incorporates ESG investment principles to identify and support companies that solve social issues. Through this approach, the company aims to contribute to sustainability realization and enhance corporate value. Additionally, the company has introduced a partnership model and adopted a performance-based compensation system tied to individual contributions, thereby strengthening organizational capability.

Jafco Group aims to achieve sustained improvement in fund performance and expand the supply of risk capital. By maintaining stable fund performance and securing external investors, the company will promote fundraising for new funds. Through this approach, the company will realize the circulation and expansion of risk capital and enhance corporate value.