JIC and JICC to establish new private equity fund (JIC PE2)

・November 1 launch for main fund,joint investment fund for large-scale projects

・Total fund size will be JPY800 billion

・Core investment themes will be “Industry Restructuring,”“Growth Investment,” and collaborative investment in private fund-led “BusinessRestructuring” opportunities

Tokyo, October 31, 2025 – JapanInvestment Corporation (“JIC”) and subsidiary JIC Capital, Ltd. (“JICC”) haveannounced that they will establish the JIC PEF2 Limited Partnership (“PEF2,” fundsize: JPY600 billion) on November 1, with JICC serving as the fund manager. Additionally,JIC and JICC will also establish the JIC PEFJ2 Limited Partnership (“PEFJ2,” fundsize: JPY200 billion) with the purpose of co-investing with PEF2 in large-scaleprojects. Hereinafter, PEF2 and PEFJ2 are collectively referred to as “JIC PE2,”and the size of this fund will be approximately JPY800 billion.

JICC has been conducting investment activities throughJIC PE, its first fund established in September 2020, aiming to achieve both afinancial return and the policy objectives of creating new businesses and newindustries to realize Society 5.0, enhancing the international competitivenessof Japanese industries, and structural reform of industries through the supplyof large-scale, long-term, neutral capital.

With the formation of JIC PE2, JICC will furtherstrengthen its efforts to provide risk capital from a medium- to long-termindustrial policy perspective to strengthen the competitiveness of Japaneseindustries.

1.    Background on Fund Formation

Although the number of entities supplying risk capitalin Japan is increasing, the supply of risk capital for advancing large-scalegrowth investments, business restructuring, new business creation and othermanagement reforms—particularly in the capital-intensive manufacturing and greentransformation/digital transformation (GX/DX) sectors—remains insufficient.

Furthermore, while numerous private equity (PE) fundstargeting Japanese companies exist, the number of domestic funds focused onlarge-scale growth/buyout deals remains limited. Additionally, investment by bothdomestic and foreign PE funds in manufacturing and platform companies—whichcontribute to strengthening industrial competitiveness and resolving socialissues—remains limited. Finally, as market reforms at the Tokyo Stock Exchange advancetoward realizing management that is focused on capital costs and share prices,and as initiatives targeting the enhancement of competitiveness through large-scalebusiness restructurings result in increasingly more large-scale deals, thedemand for large-scale risk capital continues to grow even stronger. An entitycapable of responding to these needs is required.

2.    About JIC PE2

To support Japan’s transition to a growth-orientedeconomy, the JIC Group is committed to strengthening industrial competitivenesswhile making investments that can have an impact on society. This includesrealizing Society 5.0, creating new businesses and industries through GX and DXthat resolve global social challenges, enhancing the internationalcompetitiveness of domestic industries, and industry restructuring.

Specific investment themes include: “IndustryRestructuring,” the goal of which is to strengthen industrial competitivenessby driving structural transformation within or across industries whereportfolio companies operate; “Growth Investment,” which seeks to create world-leadingJapanese companies with superior technology and business models while channelingoutstanding overseas management resources back into Japan; and “BusinessRestructuring,” which involves minority investments that complement private sectoractivities, supporting the restructuring of business portfolios—a key challengefor Japanese companies—to enhance their productivity and competitiveness.Furthermore, JIC Group will also actively explore deal structuring, includingcoordinated investments with private funds, to maximize the complementaryeffects and catalyzing impact of private capital. The Group will also continueto leverage its investment activities to contribute to the development ofinvestment professionals.

[JIC PE2Overview]

Management Company

Name:                                             JICCapital, Ltd.

Established:                                    September2020

Address:                                          Minato-ku,Tokyo

Representative Director,

President and CEO:                        ShogoIkeuchi

(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 the developmentof 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 fosteringstartups; leveraging promising untapped management resources lying dormant inlocal areas, including startups from academia and medium-sized companies; andpromoting business restructuring in response to changes in market and businessenvironments. JIC provides risk capital to these areas through fundsindependently established by JIC and LP investment in private funds to promoteopen innovation in Japan, strengthen the competitiveness of Japanese industries,and contribute to expansion of Japan’s investment ecosystem.