Subscribe to unlock this article
Thanks for your support.
Japan Bullseye Capital (“JBC”), founded by Eisuke Kobayashi and Mitsuharu Suzaki, has announced the successful closure of a significant Joint Venture Agreement with 17 personal and institutional investors, including AIJ Holdings, Capital Tree, Japan Private Equity Co., M2O Search, Scipio Holding, etc. This milestone marks the commencement of the inaugural fundraising for a partnering search activity of this nature in Japan.
In light of Japan’s demographic challenges, particularly the increasing age of management professionals, which surpassed 60 years for the first time in 2020, JBC perceives an invaluable business opportunity and estimate that nearly 10.000 companies could meet the criteria set out in their search strategy. The declining management turnover rate, which was 4.7% in the early ’90s and has averaged 3.8% in recent years, underscores the need for fresh energy and innovative leadership in the market. With over 4 million enterprises in Japan, 99% of which are SMEs, and more than 35% lacking successors, there is a substantial gap to be filled.
The duo’s goal is to identify, purchase, and nurture the growth of an existing private company with a valuation between USD 5M and 30M.
In order to provide valuable context regarding search fund activities in Japan, we spoke with Eisuke Kobayashi, Managing Partner of JBC, who anticipates the creation of various new SFs in 2024, indicating the gradual growth of this model in Japan. At the moment, only two SFs precede JBC. The first is JBS Partners, created by Yoshiaki Kurosawa, who acquired Tao Co. in 2021, an EdTech company. The second is M-Capital, led by Mitsuya Shimura, who raised USD 420k in 2022 and expects to close his deal before the end of 2024. Eisuke explained to us that there are two major accelerator funds in Japan: Search Fund Japan (SFJ), sponsored by Kimitake Ito, Development Bank of Japan, and Nihon M&A Center; and Japan Search Fund Platform (JaSFA), sponsored by Noriko Shimazu and Nomura Research & Advisory. In the last quarter, SFJ recorded its first exit: Ares Company, a wholesaler of prizes for amusement arcades, achieved an exit through M&A by GENDA GiGO Entertainment Inc., listed on the Tokyo Stock Exchange Growth Market. This will definitely improve the arrival of a new generation of searchers.
