JIC makes LP investment in RDiscovery Fund, LP

Tokyo, April 22, 2024– Japan Investment Corporation (“JIC”) has announced its decision to make an LPinvestment of USD25 million in RDiscovery Fund, LP (“RDF”), a drug discoveryincubation fund managed by RDiscovery, KK (“RD”).

JIC’s mission is to create a virtuouscycle of risk capital that supports the next generation of domestic industriesby providing funds to help companies grow and strengthen their competitivenessthrough open innovation, promotion of private investment, and the developmentof investment professionals. To achieve its mission, JIC invests inpolicy-relevant strategic business areas through LP investments in funds underJIC’s umbrella and in private funds.

 

About LPinvestment in RDF

(1) Current status of investmentmarket

The current environment is characterized by a needfor a long-term, large-scale supply of risk capital for business fields thathave the potential to be internationally competitive. Among these are thefields of biotechnology and drug discovery. Supporting biotechnology and drugdiscovery startups seeking to industrialize and commercialize is extremelyimportant from the perspective of promoting discontinuous innovation. AlthoughJapan has promising basic research and technologies in these fields, long-term andlarge-amount of funding is required to move from research and development tomarket launch. There is a lack of private investment capital for startupslooking to commercialize their research and technologies. Additionally, theecosystem supporting these startups is less developed compared to those inEurope and the United States.

(2) About RDF

RD’s investment strategy focuses on supporting thecutting-edge drug discovery technologies of academia, research institutes,pharmaceutical companies and other organizations from the startup stage. RDprimarily invests in Japanese drug discovery seeds, using its own R&D teamto advance clinical and research development while applying its knowledge andexperience in drug discovery to commercialize drug discovery seeds throughincorporation and growth support. RD also leverages its overseas investment resourcesand network to invest in early-stage global drug discovery startups, whichallows it to gain access to new investment opportunities and accumulateexperience in drug discovery development support both in Japan and overseas—experiencethat can then be utilized to support the growth of Japan-based global drugdiscovery startups.

JIC expects that its LP investment in RDF will helpcommercialize promising research results and technologies held by Japaneseacademia and business companies, and promote their social implementationthrough open innovation and other means. Additionally, by strengthening thesupport provided by RDF’s investment team, with its domestic and international developmentexperience and investment track record in the drug discovery field, JIC expectsto contribute to the creation of global drug discovery startups originatingfrom Japan.

In the short term, JIC expects to see RDF expandsits investor base, while over the medium to long term, an increase infundraising from institutional investors for subsequent funds is anticipated. Inaddition, by strengthening the global networks and consortiums making use ofJapanese drug discovery seeds, JIC expects to contribute to enhancing thedomestic life science ecosystem.

Overview of RDF

Name:                    RDiscoveryFund, LP

Established:          2025

Duration:               10years (with a possible extension of 3 years)

GP:                        RDiscovery,KK

Overview of RD

Name:                   RDiscovery,KK (formerly Remiges Ventures, KK)

Established:         2014(including predecessor Remiges Ventures, KK)

Address:              Tokyo

Representative:   TaroInaba

(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.