- Advantage Advisors
Advantage Advisors spearheads the Advantage Partners Group’s investment strategy for public equities. Funds served by Advantage Advisors acquire shares of listed firms and work hand-in-hand with company management to enhance corporate value. Working off of the decades of experience cultivated through Advantage Partners’ pioneering private investment activities, Advantage Advisors offers “private solutions” to help companies tackle difficult issues and accelerate growth.
Among the over 4,000 listed companies in Japan, the Advantage Partners Group believes that there are a number of companies which have clear growth opportunities but lack the organizational firepower, specialized M&A-related skills, and balance sheet strength to realize their full potential. In addition, the amount of pressure Japanese companies face has increased exponentially in recent years as more investors compare the growth rate of domestic firms with top global players with firms, forcing companies to realize the necessity of launching new businesses or expanding overseas to sustain growth, to consider complex M&A transactions, and to adapt to new corporate governance standards. As attracting new talent to tackle these issues becomes ever more difficult, Advantage Advisors can serve as an external steward to help companies navigate these waters.
In addition to providing strategic advice and support based on the decades of experience accumulated within the Advantage Partners Group, Advantage Advisors’ funds provide capital to meet the needs of listed companies for objectives such as acquisitions, launching overseas initiatives or new businesses, and reinforcing net assets.
Advantage Advisors Funds conduct investments after long periods of discussion with company management and after receiving the approval of the target company’s board of directors. This allows Advantage Advisors to work hand-in-hand with listed companies to directly address their needs in contrast with the adversarial approach seen at some activist funds.
All Advantage Advisors-served fund investments begin with a discussion with company management about how our staff can help increase corporate value. Examples of support offered include strategic planning, formulation of a mid-term plan, clarifying a firm’s mission/vision/value, improvements in marketing and branding, developing pricing strategies, enhancing productivity, IT upgrades / digital transformation, advice regarding M&A, negotiating tie-ups with other firms , and assisting in expanding outside of Japan..
Once the company determines which areas it would like our support in, a project team is formed with staff from both the company and from Advantage Advisors. This support is then paired with an investment product that is structured around a 3-5 year collaboration between the company and Advantage Advisors. During this period, the target company is able to leverage the Advantage Partners Group’s networks and know-how to enhance revenues, drive profits, and embark on strategic initiatives that it otherwise would not have been able to realize.
New capital from Advantage Advisors’ Funds is typically provided through the purchase of a newly issued instrument such as convertible bonds or preferred stock.
Advantage Advisors has partnered with the following institutions to provide a broader range of ways to enhance corporate value at portfolio companies.
Development Bank of Japan Inc.
DBJ will offer their wealth of experience in the fund business and providing risk capital to firms, as well as their networking power to portfolio companies
NTT DoCoMo Inc.
DoCoMo will provide corporate solutions and services that leverage their IoT, AI, big data, and 5th generation mobile communications system (5G) assets to promote the digital transformation (DX) of portfolio companies