Creating
Future Value

Fund of Search Fund Initiatives

Growthix Investment Co.,Ltd. has guidelines to help ensure investments are made in line with the ESG investment standards and also to promote ESG management at our investee companies after investments are made.
We believe that by incorporating the ESG investment standards into our strategy enables Growthix to identify new risks and opportunities well before they realize and lead to building more resilient portfolio that have better long-term performance.

As more investors have included “sustainability” as a key factor for their investment decisions, we believe that having ESG at the core of our investment strategy enables Growthix and our investors to secure profitability while contributing to the creation of a more sustainable society and economy.
At Growthix, we are confident we possess a model that would revolutionize historical investment methods which leads to the maximization of both social utility and profitability.

Initiatives at NextPreneur University

NextPreneur University teaches ESG management in a practical manner.
Since the graduates acquire deep knowledge of ESG management and how to incorporate ESG into daily operations, both NextPreneurs (next-generation entrepreneurs) as well as our shareholders are able to understand that the pursuit of ESG management and profit maximization are not mutually exclusive. This enables both business management team as well as investors to draw the business growth strategies with this consensus in mind.

We recognize that to distinguish ESG from CSR, it requires a realistic perspective that drives the maximization of profit but at the same time incorporates ESG into the business itself. This not only provides profit to our investors but also enables us to continuously invest back into society which leads to our realization of our mission as well.
In determining whether or not ESG management is being effectively practiced, we implement non-financial targets, measure the results, and define penalties and rewards accordingly. By implementing compensation & benefit systems that reflect the process and result of ESG management being executed, we ensure that ESG management is not a business target or a philosophy, but is rather deeply embedded into day-to-day operations and tasks.

How ESG initiatives relate to Growthix’s mission

Once NextPreneurs complete their mission of successfully increasing the value of the inherited company through ESG management. They would then exit the company and become the next search fund investors who hold the strong mindset of ESG investment. Our mid-term objective is to form a financial ecosystem that perpetually supports economic growth through the creation and collaboration of NextPreneurs and Search Fund Investors with the understanding of the importance of ESG.

The creation of this cyclical capital structure and the growth of these successors are the embodiment of the philosophy contained in Growthix’s mission of “ Creating a prosperous world through a sustainably circulating capital structure”

SDGs initiatives

Growthix endorses search funds investments that are targeted towards businesses that share the values represented under SDGs. Furthermore, even if the company we invest in is inadequate in this regard at the time of investment, we proactively influence and encourage the reformation of the business entity to achieve sustainability and a positive impact to society.

Of the 17 goals and 169 targets of the SDGs, we primarily aim to be a company aligned with the following items.

• 4.4

  By 2030, substantially increase the number of youth and adults who have relevant skills, including technical and vocational skills, for employment, decent jobs and entrepreneurship

• 8.1

  Sustain per capita economic growth in accordance with national circumstances and, in particular, at least 7 per cent gross domestic product growth per annum in the least developed countries

• 8.2

  Achieve higher levels of economic productivity through diversification, technological upgrading and innovation, including through a focus on high-value added and labour-intensive sectors

• 8.3

  Promote development-oriented policies that support productive activities, decent job creation, entrepreneurship, creativity and innovation, and encourage the formalization and growth of micro-, small- and medium-sized enterprises, including through access to financial services

• 8.4

  Improve progressively, through 2030, global resource efficiency in consumption and production and endeavour to decouple economic growth from environmental degradation, in accordance with the 10-year framework of programmes on sustainable consumption and production, with developed countries taking the lead

• 8.8

  Protect labour rights and promote safe and secure working environments for all workers, including migrant workers, in particular women migrants, and those in precarious employment

• 8.9

  By 2030, devise and implement policies to promote sustainable tourism that creates jobs and promotes local culture and products

• 8.10

  Strengthen the capacity of domestic financial institutions to encourage and expand access to banking, insurance and financial services for all

• 17.16

  Enhance the global partnership for sustainable development, complemented by multi-stakeholder partnerships that mobilize and share knowledge, expertise, technology and financial resources, to support the achievement of the sustainable development goals in all countries, in particular developing countries

• 17.17

  Encourage and promote effective public, public-private and civil society partnerships, building on the experience and resourcing strategies of partnerships

CEO’s Message

Having M&A advisory services as one of the main pillars of the company, Growthix has daily touchpoints with owners and presidents of small and medium-sized enterprises in Japan that need ESG management. This is precisely why Growthix, which provides search fund support in the private financial industry, is capable of being a leading figure in the spread of ESG management.

In order to tackle the social issue of information gap and to promote ESG management throughout society, the most important thing is to be connected with the people who have the power to lead the charge.

Looking back historically, renaissances and paradigm shifts did not come from a top-down approach but were rather a result of the unyielding voices from citizens and private sectors, demanding change.

Today, we are on the verge of a major transformation from old-style capitalism based on the Anglo-Saxon model to a new form of capitalism. Each employee at Growthix has a very large role to play, and as a leading company in this field, we as a company intend to work diligently with pride and a high sense of responsibility.