1. Invest in proficient businesses that have high potential for growth in the Pan-Asian region with Japan as the primary focus, making full use of the team members' expertise and network in the respective industry.
2. Create value through actively participating in the operation of businesses that undergo various schemes like MBO, business division carve out, succession and turnaround.
3. Accelerate business growth by surveying the portfolio company's latent areas of growth and analyzing the challenges and impediments in order to realize the company's true corporate value.
4. Introduce new compensation schemes that reflect the performance of the company and its executives, which are to be evaluated based on the business strategies, management plan, and operational indices that are agreed in advance.
5. Manage and operate the portfolio company while maintaining a fair profit balance between the shareholders, management team, and employees in order to achieve the sole common goal of business value creation.

Investment Policies

Ridgeway Capital Partners Ltd. will make investments on the assertion that it will proactively participate (hands-on) in operating the portfolio company. In principle, it will:

1. Make optimal decisions to add value to the profitability and strategy of the business while taking into account the fair value in the market.
2. Pursue the creation of stable cash-flow and growth opportunities.
3. Not make arbitrage transactions for liquidation.

Patterns of Investment

• Profitable subsidiaries and business divisions that have become subject to sellout due to business restructuring or strategy revision of the parent company.
• Carve out business divisions that are unable to fully utilize their technological expertise due to the inefficiencies of large organizations.
• Medium-sized enterprises that are in need of operational fortification, such as business succession.
• Turn around bankrupt enterprises or those that require liquidation of past estates and other diversified investments.
• Milestone investments in venture businesses that are in expanding markets like IT and bio-technology and possess a clear technological advantage.

*Ridgeway Capital Partners Ltd. considers investing in businesses and enterprises of fast growing industries and fields that arise as a result of advancements in technology and industrial structure. By teaming with industrial partners to make further buyouts and investments (known as building-up), substantial corporate value can be created. Such an investment is known as a milestone investment, and is positioned as a cumulative investment along with business buyout and turnaround.

Investment Size

• Investment fund is generally 1-5 billion JPY.
• Total asset is generally 3-10 billion JPY and cross income is 1-5 billion JPY.
• Investments basically take the form of majority investments in order to gain control of the portfolio company.
• Joint investments with strategic investors are considered if necessary.

Realizing Profit from Investment

• The first 3 years are considered the buildup period, and the following 5 years are the exit period.
• With each investment deal, profit will be generated through IPO or sellout to strategic investors, as 5 years as the target time-span.