Fund Manager: Tomoaki Tsutsumi
Company: Keystone Partners Co., Ltd.
Established May 2009, Keystone Partners Co., Ltd. (“KSP”) is an independent fund management company that employs fund managers with professional skills and experience arranging a variety of financial services for Japanese and foreign companies. Organizationally, KSP has an ideal business platform that mixes personnel with all the skills necessary for debt investment with support from KSP as a parent company. Actually conducting debt investment requires three core skills: 1) financial structuring ability in the sourcing of investment projects and the structuring of these projects, 2) credit researching ability for investment targets (corporate due diligence), and 3) the ability to evaluate/dispose of collateral (real estate, etc.), which is a key area for risk protection. In addition to having personnel with these fund management skills, KSP has the overwhelming competitive advantage in comparison with other fund management companies because of the operational support (outsourcing) it receives from its parent company, allowing speedy and low cost operations.
To make investments to regenerate/support the growth of companies experiencing stagnant sales/profits due to an inability to accommodate worsening macroeconomic conditions or rapid changes in the structure of their industries, despite having a solid business base or superior technologies that provide products or services essential to Japanese society. Our basic investment strategy is to focus on the major deviations between assumed future cash flows and actual operating cash flows, and with the cooperation of creditors such as banks, we select financing to fill the gaps in cash flow that are identified as necessary for the target organization from their financing activities. Once an investment has been made, we cooperate with management and employees in following the business plan created with the company in which the investment was made. Fund managers from the fund management business provide all manner of support (including, but not limited to, advice concerning general management in relation to finance, marketing and sales, human resources and labor, production management, business management etc.) toward the achievement of this business plan, while working to expand future cash flows and obtain high returns on investments by increasing the value of the business. We do not just seek out the net assets of failing companies like so-called “vulture funds,” in order to seek investments for short-term profits, but have a keen understanding of the significance of our efforts on the Japanese economy as a whole, and perform investments that maintain a balanced income for all stakeholders in society.