JIC makes LP investment in MPower Partners Fund II L.P.

Tokyo,May 14, 2025 – Japan Investment Corporation (“JIC”) has announced its decisionto make an LP investment of JPY3 billion in MPower Partners Fund II L.P.(“MPower2”), which is managed by MPower K.K. (“MPOWER”), a company that investsin growth stage companies to accelerate their scaling.

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 MPower2

(1)Current status of investment market

Along-term, large-scale supply of risk capital is required at the growth stage forthe creation of unicorns—defined as privately held companies with an enterprisevalue of USD1 billion or more. However, the supply of risk capital for growthand later stage startups in the domestic market is limited.

From the perspective of diversity, other issues related to Japan’s startupecosystem include the relatively small number of women entrepreneurs and thefact that the majority of decision-makers in domestic venture capital firms aremen.

(2) About MPower2

MPOWER provides growth capital to mid- and later-stage startups andsupports their development by introducing them to its network of domestic andinternational business companies, universities, top-tier overseas venturecapital firms, government agencies, and other organizations.  JIC expects that this support will lead to anincrease in the number of startups expanding their business scale at the pre-IPOstage and taking on larger markets through global expansion.

MPOWER has a diverse investment team—members come from multiple countriesand the majority are women—and through its existing fund it has a track recordof investing in women entrepreneurs. Through this investment, JIC expects tocontribute to the diversification of management talent in Japan.

Furthermore, by providing support to MPOWER in fund management and otherareas, JIC expects to expand the medium- to long-term supply of risk capitalfrom institutional investors through funds managed by MPOWER.

Overview of MPower2

Name:                               MPowerPartners Fund II L.P.

Launch:                            2025

Duration:                          10 years (with a possible extension of 2 years)

GP:                                   MPowerPartners GP II, Limited

Overview of MPOWER

Name:                              MPowerK.K.

Established:                    2020

Address:                      　Minato-ku,Tokyo

Representative:   　　　KathyMatsui

(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 are essentialfrom the perspective of strengthening industrial competitiveness but lackprivate investment capital (investment strategies, sectors, stages, regions,etc.) with the aim of stimulating private investment capital in the short termand 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.