JIC makes LP investment in Japan Activation Capital II L.P.

Tokyo, March27, 2025 – Japan Investment Corporation (“JIC”) has announced its decision tomake an LP investment of JPY25 billion in Japan Activation Capital II L.P. (“JAC2”),an engagement fund managed by Japan Activation Capital, Inc (“JAC”).

JIC's mission is to create a virtuous cycle of risk capital that supportsthe next generation of domestic industries by providing funds to help companiesgrow and strengthen their competitiveness through open innovation, promotion ofprivate investment, and the development of investment professionals. To achieveits mission, JIC invests in policy-relevant strategic business areas through LPinvestments in funds under JIC’s umbrella and in private funds.

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About LP investment in JAC2

(1) Current status of investment market

In thecontext of large-scale business restructurings taking place in response to therapidly changing market and business environments of recent years, it is nowacknowledged that engagement activities (long-term, constructive dialogue) arenecessary for improving corporate value. However, only a few large-scaleengagement funds in Japan are currently capable of taking on this role. Furthermore,in order to create new businesses and new earning power that will support Japanin the future, it is essential to promote business development while working torealize Society 5.0, looking at future global social issues as potentialsources of growth and leveraging GX and DX to create new businesses andinnovations that can resolve these issues.

(2) About JAC2

JAC isan engagement fund management company that invests in large- and mid-sizedlisted companies in Japan and develops trusted relationships with themanagement teams of investee companies to support management initiatives aimedat long-term, sustainable growth and enhanced corporate value. As a majorshareholder in investee companies, JAC seeks to encourage them to take healthyrisks and invest in growth, adopting a sustainable approach to enhance theircorporate value and improving their key performance metrics. JAC also seeks tofoster the development of corporate activities of the large- and medium-sizedJapanese companies that drive the Japanese economy, and to create a virtuouscycle for the broader Japanese economy.

JIChopes that JAC’s management support will support investee companies optimizetheir business portfolios, including their M&A strategies and the sale ofnon-core businesses, and encourage mid- to long-term growth investments andindustry restructuring, thereby strengthening the competitiveness of domesticindustries.

JAC’spost-investment value creation team includes specialists in the fields of DX,HR, and sustainability, and it seeks to deliver added value in these fields. JICalso hopes to promote a virtuous cycle of domestic investment and innovation,including investment in human capital centered on initiatives related to GX andDX by investee companies.

Finally,through its LP investment in JAC2, JIC will seek to catalyze a broader influxof risk capital from institutional investors to funds managed by JAC over themedium to long term.

Overview of JAC2

Name:                               JapanActivation Capital II L.P.

Established:                      2025

GP:                                    JapanActivation Capital, Inc

Overview of management company

Name:                               Japan ActivationCapital, Inc

Established:                      2023

Address:                           Tokyo

Representative:   President and CEO, Hiroyuki Otsuka

 (Reference) JIC fund investment strategy

(For reference)

Objectives of JIC’s LPinvestments

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

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

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

1) Investmentteams

JIC promotes growth of the investee fundsas a leader in the intermediary of risk capital provided by institutionalinvestors (pension funds, foreign investors, etc.) towards the establishment offuture funds. This will be achieved by expanding experience and track recordsamong its fund investment team (management company) and by further improvingits ability to respond to institutional investors.

2) Investmentprofessionals

With the cooperation of industryorganizations such as JVCA, institutional investors, and investee managers, JICsupports the research and introduction of best practices of managers and thedevelopment of human resources serving as investment professionals.

3) Investmentstrategy

JIC will add diversity and depth to themarket by making an LP investment in funds even for those with strategies thatare not common in Japan yet, in response to their fund raising, including atthe time of its establishment.

About Japan Investment Corporation (JIC)

Japan InvestmentCorporation (“JIC”) was established in September 2018 under the IndustrialCompetitiveness Enhancement Act. JIC’s investment focus areas are creating avirtuous cycle of domestic investment and innovation; creating  and fostering startups; leveraging promisinguntapped management resources lying dormant in local areas, including startupsfrom academia and medium-sized companies; and promoting business restructuring inresponse to changes in market and business environments. JIC provides riskcapital to these areas through funds independently established by JIC and LPinvestment in private funds to promote open innovation in Japan, strengthen thecompetitiveness of Japanese industries, and contribute to expansion of Japan’s investmentecosystem.