Is the "vulture" the savior?

～ Regeneration of small and medium-sized enterprises carried by the fund ～ March 10, 19:34

Who will support small and medium-sized enterprises that have been hit by the new coronavirus?

It has become a major issue as the impact is prolonged.

Under these circumstances, "investment funds" are activating the movement to support the revitalization of small and medium-sized enterprises.

An "investment fund" that has the image of a "vulture" that relentlessly organizes and sells acquired companies.

Will it be the savior of corporate revitalization?

(Ryusuke Kimura, Reporter, Ministry of Economic Affairs)

A fund launched by a business revitalization professional

The first thing I visited was the investment fund "New Horizon Capital" based in Tokyo.

Chairman Yasushi Ando launched a new company last month to create a corporate revitalization fund to support SMEs hit by the new Corona.

Mr. Ando gained experience in dealing with non-performing loans at a branch office in Europe in the 1990s when he worked for a bank, and then launched his own fund.

For nearly 20 years, he has been at the forefront of revitalizing companies that have fallen into a slump, such as "Mitsubishi Motors" and "Tachikichi," a Japanese tableware sales company headquartered in Kyoto.

Ando says the current situation for SMEs affected by Corona is serious.

Mr. Ando

"In industries such as food and beverage and accommodation, debt is rising, and the number of small and medium-sized enterprises with excessive debt that takes more than 10 years to repay is increasing rapidly. Even if repayment is postponed, it will be completely solved. I have to sing a drastic move here. "

Cooperation with regional financial institutions

Corporate revitalization funds generally improve cash flow by purchasing the debt of a company from a financial institution.

In addition, we will support the revitalization of the company by contributing funds to introduce new equipment and cutting out unprofitable businesses.

If the business gets on track and the value of the company increases, the fund side can also profit.

Mr. Ando wants to purchase loans for small and medium-sized enterprises from regional financial institutions such as regional banks and credit unions through a fund, while also cooperating with financial institutions to create a business revitalization plan and provide revitalization know-how.

Mr. Ando

"By going inside, we can get funds that do not need to be repaid. Otherwise, we will only repay the debt and the company will not grow. By entering the fund, we will capitalize the debt. I will smoothly change to sexual funds. "

Aim to support more than 100 companies

Mr. Ando plans to launch a corporate revitalization fund of 20 to 30 billion yen in collaboration with more than 10 regional banks and credit unions by the end of the year.

We plan to provide support to more than 100 SMEs nationwide.

Mr. Ando:

"We have already received consultations on a few specific projects. The owners of small and medium-sized enterprises are suffering from excess debt, but it is not that they did not make daily efforts, but that they are externally called the new Corona. It's due to factors. I want to work with local financial institutions to free important local companies from excess debt. "

Regional fund aiming for local production for local consumption of finance

At the regional level as well, a corporate revitalization fund has been launched that responds to the Corona disaster.

One of them is Fukuoka-based investment fund "Dogan".

Daisuke Mori, the president, launched it last December with the investment of a local company.

After working for a foreign financial institution, Mr. Mori has been working on the revitalization of local businesses in Kyushu since 2004 with the aim of "local production for local consumption of finance" that returns profits to the region.

We also have the experience of regenerating a shirt sewing factory in Kumamoto Prefecture, which was on the verge of closing down, into a nationwide brand company.

Mr. Mori:

"It

's

not like a fund, but the society is small in rural areas, so even after the company's revitalization is over, it's hard to get rid of the relationships with the managers. There is a point. There is a serious problem of business succession in rural areas where no successor can be found, and Corona is catching up with it. I feel that there will be more consultations in the future. "

Inject "risk money"

Mr. Mori wants to inject funds for management innovation such as introduction of new equipment and digitalization to companies that are difficult to obtain loans from banks due to delays in repayment.

We aim to revitalize by investing so-called risk money, which places less burden on the management.

Mr. Mori

"No matter how difficult the company is, we will take all the consultations. Even if we can not support with the funds of the fund, we will carry out M & A (merger / acquisition of companies) to connect employment, and we will join as a consultant You can also connect businesses. "

" Supporting small and medium-sized enterprises in rural areas is not so easy. Still, I want to give confidence to my company with support that suits my height. I would like to help you to the point where you can make a profit and do it as a company. "

Public institutions also contribute funds to the fund

Public institutions are also embarking on support for the corporate revitalization fund.

The Organization for Small & Medium Enterprises and Regional Innovation, an independent administrative agency that supports small and medium-sized enterprises, has begun to contribute up to four-fifths of the fund's funds.

Corporate revitalization funds don't just keep slumping companies alive.

We will invest as a business in companies that have the potential to regenerate.

The process of regeneration can also be painful.

Still, it's a big advantage for business owners to have the opportunity to start again with funds that don't need to be repaid.

I would like the Corporate Revitalization Fund to have a strong presence as a new supporter for small and medium-sized enterprises that are struggling to raise funds.

Ryusuke Kimura,

Reporter of the Ministry of Economic Affairs

Joined the

Fukui Bureau in

2003,

and is

currently in charge of the securities industry

after working at the

Fukui Bureau, the International Department, and the

Berlin Branch.