JIC makes LP investment in UC Healthcare Provider Limited Partnership

・Drive the creation of new business in the healthcare industry in Japan for the Society 5.0 era
・Establish a role model as the first comprehensive healthcare provider in Japan
・Stimulate the private sector investment in the healthcare industry

Tokyo, December 13, 2021 – Japan Investment Corporation (“JIC”) has announced its decision to make an LP investment in UC Healthcare Provider Limited Partnership (“UC Healthcare LP”), which aims to deliver efficient and high-quality healthcare services.

JIC aims to generate a virtuous cycle of risk capital to support next-generation industries in Japan. To achieve this vision, JIC promotes open innovation as a means of supporting growth and enhancing international competitiveness of businesses. JIC approaches these challenges by stimulating private sector investments in open innovation together with JIC’s own investment, while fostering investment professionals.

To achieve this mission, JIC invests in strategic areas from the policy perspective through LP investments in funds under JIC’s umbrella and private funds.

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About LP investment in UC Healthcare Provider Limited Partnership
JIC makes LP investments in private funds based on its investment strategies, and has signed an LP investment agreement committing to invest up to JPY24 billion in UC Healthcare LP.
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1. Background
JIC’s investment criteria* identifies the healthcare sector as an investment focus area for “Driving the creation of new businesses for Society 5.0.”

*https://www.j-ic.co.jp/en/investment/criteria/

As we move toward the realization of Society 5.0, we expect that there will be improvements in productivity and new businesses created in the healthcare sector – including healthcare, medical care, and nursing care – driven by collaboration between different industries and organizations, and through the introduction of new services that deploy the latest in IoT, big data, and robotics technology. The long-term supply of risk capital for these activities will be essential.

Furthermore, in consideration of Japan’s declining and ageing population and shrinking labor pool, as well the changes in circumstances and needs driven by population changes in cities and rural areas, we recognize the need for cooperation and the sharing of functions between organizations to efficiently provide high-quality healthcare.
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2. About UC Healthcare Provider Limited Partnership (UC Healthcare LP)
UC Healthcare LP is a fund established and managed by Unison Capital Group (“Unison”). It has extensive knowledge and a strong network within the healthcare industry and has invested in healthcare providers through other funds. Aiming to establish the first comprehensive healthcare provider in Japan, UC Healthcare LP will make investments in local hospitals, pharmacies, and home care providers, and collaborate with related organizations to improve the working conditions of healthcare providers, increase productivity, and efficiently provide high-quality healthcare.

Through this LP investment in UC Healthcare LP, JIC aims to contribute to the creation of new businesses in the healthcare industry, the establishment of an innovation ecosystem in the healthcare industry, and the creating of a new industry role model as the first comprehensive healthcare provider in Japan. Moreover, JIC also expects this LP investment to stimulate the private sector investment in this area.

Furthermore, JIC will support Unison in expanding the entrustment of institutional investors in the future by advising on fund management from an LP investment standpoint.

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Overview of UC Healthcare Provider Limited Partnership (UC Healthcare LP)
Name: UC Healthcare Provider Limited Partnership
Date of establishment: 10 December 2021
Duration: 10 years
GP: UCGP V(H), L.P.
Investment Advisor: Unison Capital Inc.

Overview of investment advisor
Name: Unison Capital, Inc.
Date of establishment: 22 October 1998
Address: Chiyoda-ku, Tokyo
Representative Director: Hayashi Tatsuya, Kawasaki Tatsuo

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(Reference) JIC’s fund investment strategy
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(Reference) Objectives of JIC’s LP investments

1. Stimulate the supply of risk capital to help companies grow and to enhance their competitiveness

JIC intends to provide capital to areas that are essential from the perspective of strengthening industrial competitiveness but lack private investment capital (investment strategies, sectors, stages, regions, etc.) with the aim of stimulating private investment capital in the short term and medium-long term.

2. Create diverse investment teams, professionals, and strategies to support a virtuous cycle of risk capital

1) Investment teams
JIC promotes growth of the investee funds as a leader in the intermediary of risk capital provided by institutional investors (pension funds, foreign investors, etc.) towards the establishment of future funds. This will be achieved by expanding experience and track records among its fund investment team (management company) and by further improving its ability to respond to institutional investors.

2) Investment professionals
With the cooperation of industry organizations such as JVCA, institutional investors, and investee managers, JIC supports the research and introduction of best practices of managers and the development of human resources serving as investment professionals.

3) Investment strategy
JIC will add diversity and depth to the market by making an LP investment in funds even for those with strategies that are not common in Japan yet, in response to their fund raising, including at the time of its establishment.

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About Japan Investment Corporation (JIC)
Japan Investment Corporation (“JIC”) was established on September 25, 2018. Amid the accelerated use of IoT, Big Data, AI, and other new information technologies globally, JIC aims to address the growing demand for risk capital for long-term, large-scale growth investments with a governance structure conducive to quick and flexible investment decision making.