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Establishment of Private Equity Firm, MSD Investments Ltd., and Launch of 1st Buyout Fund

Oct. 1, 2015


Mitsui & Co., Ltd.
Sumitomo Mitsui Banking Corporation
Development Bank of Japan Inc.


Main Contents

Mitsui & Co., Ltd. ("Mitsui", Head Office: Tokyo, President and CEO: Tatsuo Yasunaga), Sumitomo Mitsui Banking Corporation ("SMBC", President: Takeshi Kunibe) and the Development Bank of Japan Inc. ("DBJ", President and CEO: Masanori Yanagi) (hereinafter collectively "Three Sponsors") have jointly established a private equity firm, MSD Investments Ltd. ("MSD Investments"). MSD Investments has begun to manage the MSD 1st Investment Limited Partnership ("MSD Fund"), which was established today with capital commitments of ¥10 billion from each of the Three Sponsors, amounting to ¥30 billion.

Many companies in Japan today face a challenging economic environment and a wide range of problems, including intense competition in domestic and overseas markets as well as business succession issues of family business owners due to a lack of willing successors with the same family roots and managerial expertise. MSD Investments will work side-by-side with portfolio companies to assist them in advancing to the next phase of growth. The Three Sponsors will use a broad range of networks and business knowledge in their efforts to be the best partner of such portfolio companies, while taking a long-term perspective.

Mitsui has continually invested in domestic and overseas businesses, including both venture stage firms and matured enterprises, directly or through its affiliated vehicles. It plans to expand the scope and scale of its investments, especially in matured companies, by making direct equity investments or capital commitments to funds in Japan and overseas that it identifies or forms, typically with strategic partners, as in the present case. To ensure the success of this particular initiative, Mitsui will utilize its domestic and international networks as well as its managerial expertise. Mitsui believes that its tangible and intangible assets accumulated over time could contribute to the growth of portfolio companies, in such areas as overseas expansion and operational improvements.

SMBC will provide solutions for its clients to resolve a broad range of business issues, including business succession, and contribute to their growth through this initiative by taking advantage of the networks, corporate value creation, finance expertise, and human resources of the Three Sponsors, as well as by providing risk capital.

DBJ is committed to contributing to the growth of companies in Japan and the revitalization of the Japanese economy. To materialize the strategy through this initiative, DBJ will not only utilize its accumulated investment knowledge and extended networks but provide risk capital in collaboration with Mitsui and SMBC. This initiative will also be eligible for the Growth Co-creation Facility, which was established on June 29, 2015 as an independent initiative by DBJ with the aim of facilitating the creation and expansion of domestic growth capital markets.

Profile of MSD Investments Ltd.

Trading name MSD Investments Ltd.
Address 8F, Nikkei Building, 3-7, Ohtemachi 1-chome, Chiyoda-ku, Tokyo
Capital ¥99 million
Shareholders Mitsui & Co., Principal Investment Ltd. 33.3%
SMBC 33.3%
DBJ 33.3%
Established September 1, 2015
Representatives Hidemasa Aida (Representative Director)
Hiroshi Yasuda (Representative Director)
Contact for inquiries Telephone: +81-3-3285-3622
Activities Manage investment partnerships and provide management consulting services
Basic philosophy As a private equity firm established by Japanese sponsors for Japanese companies, we will strive to maximize value for all stakeholders, including shareholders, suppliers and employees, by helping companies to resolve issues and achieve growth.

Profile of Managed Fund

Fund name MSD 1st Investment Limited Partnership
Fund size ¥30 billion
General partner MSD Investments Ltd.
Limited partners Mitsui
SMBC
DBJ
Established October 1, 2015
Term 10 years

Sponsors

Sponsors

Notice:
This announcement contains forward-looking statements. These forward-looking statements are based on Mitsui's current assumptions, expectations and beliefs in light of the information currently possessed by it and involve known and unknown risks, uncertainties and other factors. Such risks, uncertainties and other factors may cause Mitsui's actual results, financial position or cash flows to be materially different from any future results, financial position or cash flows expressed or implied by these forward-looking statements. These risks, uncertainties and other factors referred to above include, but are not limited to, those contained in Mitsui's latest Annual Securities Report and Quarterly Securities Report, and Mitsui undertakes no obligation to publicly update or revise any forward-looking statements.
This announcement is published in order to publicly announce specific facts stated above, and does not constitute a solicitation of investments or any similar act inside or outside of Japan, regarding the shares, bonds or other securities issued by us.

Information

For inquiries on this matter, please contact

Mitsui & Co., Ltd.
Corporate Communications Division
Hiroo Yoshida
Telephone: +81-3-3285-7564
Facsimile: +81-3-3285-9819
Sumitomo Mitsui Banking Corporation
Public Relations Dept.
Tomoyuki Narita
Telephone: +81-3-4333-3680

Development Bank of Japan Inc.
Strategic Finance Department
Telephone: +81-3-3244-1351