Investment Strategy

Overview

Since our first investment in 2005, The Longreach Group’s distinctive private equity investment strategy has been refined along consistent themes of regional, sector, deal type and value creation focus.

Our latest fund Longreach Capital Partners 3 is deploying with:

Portfolio construction diversified across sectors, deal types and vintage years.

Value creation strategies combining strategic repositioning, operational efficiencies and growth, and balanced across geographic market growth drivers.

LP co-investments where appropriate.

Portfolio construction diversified across sectors, deal types and vintage years.

Value creation strategies combining strategic repositioning, operational efficiencies and growth, and balanced across geographic market growth drivers.

LP co-investments where appropriate.

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Region

We focus on control buyouts based in Japan and selectively in Greater China, including investments that capture Asian and Global growth opportunities.

Sectors

We focus our capital deployment across three sectors.

Industrial and Technology

We invest in established and high quality industrial and technology businesses:

  • Focus areas include electronics components and parts, precision equipment and industrial machinery, materials and chemicals, communication related products
  • We look for strong businesses with unrealized growth and performance potential
  • We seek to avoid businesses with significant technology disruption or capex risks
  • We use leverage appropriately but manage to strong balance sheets and liquidity to capture growth investments and defend against shocks
Quasar Engineering
LCP3

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Hitachi Via Mechanics, Ltd.
LCP2

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OCC Corporation
LCP1

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Consumer Related

We invest in consumer businesses with strong franchises and unrealized growth potential:

  • Focus areas include specialty retail, restaurant chains, food and beverage, personal care products, fashion and accessories
  • We focus on middle-class oriented consumer offerings and seek to avoid volatile and fashion-risk segments
  • We look especially for Japanese consumer plays on the burgeoning Asian middle class market – both in expansion outside Japan and in capturing in-bound tourism to Japan
Kohikan Corporation, Ltd.
LCP3

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Wendy's Japan K.K. / First Kitchen Co. Ltd.
LCP2

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McDonald's Japan
LCP1

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Hitachi Via Mechanics
LCP1

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Business Services

We invest across the business services spectrum, especially where outsourcing and digitalization trends layer growth onto resilient customer platforms:

  • Focus areas include business process outsourcing, IT services, logistics
  • We look for strong cash flow, leverageable businesses models benefitting from strong secular growth trends and market consolidation
  • We note that accelerated business operations outsourcing and financial services digitalization open up exciting new growth opportunities
Japan Systems
LCP3

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Nippon Outsourcing Corporation
LCP2

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SANYO Electric Logistics
LCP1

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Value Creation

We have a long track record, and carefully built strategies and capabilities, in bringing absolute returns generating Value Creation to our portfolio companies. This is a complex area, with specific requirements for each portfolio company. The defining elements in Longreach Value Creation are:

  • Disciplined entry valuation, prudent deal structuring and balance sheet strength
  • Management excellence and a culture of success to globally benchmarked performance standards
  • Positioning portfolio companies to capture opportunities from high growth Asian markets
  • Clear strategy focus with realistic and accountable business plan execution
  • Best practice corporate governance standards
  • Operational excellence to capture all possible growth and efficiency gains
  • Skillful and well-timed exit execution
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LP Partnership

Across all our Funds and in all of our Investment Strategy execution, we work with full commitment to strong LP Partnership. This includes:

  • Timely and transparent communications
  • Meeting LP expectations in the way that we manage our business and in ESG requirements
  • Offering co-investments
  • Working with our LPs in long-term relationships, to understand their evolving needs and expectations
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