Japan Industrial Partners (JIP) is a private equity firm based in Tokyo, Japan. Founded in 2002, the firm specializes in carve-outs to develop the private equity business and contribute to corporate reorganization and restructuring of Japanese companies.
JIP is known for acquiring underperforming businesses and turning them around by implementing strategic changes to improve their profitability.
In March 2023, Toshiba Corp’s board accepted a buyout offer from a group led by JIP, valuing the company at 2 trillion yen ($15.2 billion).
The deal was aimed at taking Toshiba private and delisting it from the Tokyo Stock Exchange after 74 years.
The tender offer from JIP succeeded in September 2023, paving the way for the embattled electronics conglomerate to go private.
The acquisition of Toshiba is considered one of the largest private equity deals in Japan’s history.
JIP’s investment portfolio includes companies in various sectors, including automotive, healthcare, and technology. The firm has a reputation for being a hands-on investor and working closely with portfolio companies to drive growth and value creation.
With a focus on corporate reorganization and restructuring, JIP aims to contribute to the revitalization of the Japanese economy by supporting the growth of its portfolio companies.
Top Private Equity Firms Japan
History and Overview
Japan Industrial Partners is a private equity firm based in Tokyo, Japan. The firm was founded in 2002 and specializes in carve-outs to develop the private equity business and contribute to corporate reorganization and restructuring of Japanese companies.
As a private equity firm, Japan Industrial Partners invests in turnaround, buyouts, and carve-out investments. It primarily invests in the manufacturing sector, including food, distribution, and services.
One of Japan Industrial Partners’ most significant deals was its $15.2 billion acquisition of Toshiba Corp’s memory chip unit in 2018. The deal was a joint effort with Bain Capital and Development Bank of Japan, and it helped Japan Industrial Partners become a significant player in the semiconductor industry.
The firm has a strong track record of investing in Japanese companies and contributing to their growth. For example, Japan Industrial Partners invested in the Japanese restaurant chain Watami Co. Ltd. and helped it expand internationally.
Overall, Japan Industrial Partners is a reputable private equity firm in Japan with a successful history of investing in Japanese companies and contributing to their growth.
Key Investments and Portfolio
Toshiba Buyout
Japan Industrial Partners (JIP) made headlines in 2023 with its successful $14 billion buyout of Toshiba, a Japanese industrial conglomerate that specializes in nuclear and defence technology, among other things. The buyout was conducted through a tender offer, and JIP gained a 78.65% stake in Toshiba as a result. The remaining shareholders were bought out later, and Toshiba was delisted from the Tokyo Stock Exchange. The buyout was a significant achievement for JIP, as Toshiba was one of the largest companies in Japan at the time.
Other Significant Investments
Apart from the Toshiba buyout, JIP has made several other significant investments in Japanese companies. For example, JIP acquired Narumiya International, a materials maker, in 2018. JIP also led a consortium that acquired Kioxia Holdings, a memory chip maker, in 2019. JIP specializes in turnaround and restructuring of Japanese companies, and its investments reflect this focus.
Financial Performance
JIP’s financial performance has been impressive in recent years. In 2022, JIP’s fund size reached JPY 100 billion, and the firm has been raising more funds since then. JIP’s investments have also generated good returns, with several successful exits in recent years. JIP’s financial performance has been helped by its focus on carve-outs and restructuring, which can create value for investors.
Challenges and Controversies
Like any private equity firm, JIP has faced challenges and controversies. For example, JIP was involved in a scandal in 2021 when it was revealed that one of its portfolio companies had engaged in accounting fraud. JIP commissioned a shareholder-led investigation into the matter, and the company in question was ultimately delisted from the Tokyo Stock Exchange. JIP has also faced criticism for its corporate governance practices, with some activist shareholders calling for more transparency and accountability.
Future Outlook
JIP’s future outlook is positive, as the firm continues to raise funds and make strategic investments in Japanese companies. JIP is well-positioned to take advantage of opportunities in the Japanese market, and its focus on carve-outs and restructuring should continue to generate value for investors. However, JIP will need to navigate challenges such as increased competition from other private equity firms and ongoing pressure to improve its corporate governance practices.
