Investment Banking Business

Financial Solutions

The FGI Group provides solutions, hinging on finance, to address increasingly complex and diversified issues faced by corporations, mainly, as well as smaller businesses, operating projects and organizations.

The FGI Group supports clients seeking to raise capital by offering planning and suggestions on ideal financial strategy and by inviting financial institutions, investors and others to participate in financial arrangements. On the flip side, the Group provides investment and loan opportunities created through financial arrangements to financial institutions, investors and others seeking to utilize available capital. Investment and loan activity captures various assets, including real estate and securities, from investors and others, and the acquisition, management and operation of such assets is entrusted to an investment management subsidiary.

Fund-raising can be a huge stumbling block on the road to creating businesses and projects that address social issues. The FGI Group helps address issues by providing solutions based on an extensive range of knowledge and experience in such areas as start-up/venture capital contribution, regional renaissance projects and business succession.

    Arrangements,
    Asset Management
    The FGI Group engages in arrangement services that underpin optimum fund-raising conditions for capital-seeking clients and present investment and loan opportunities to clients seeking to utilize available funds. Another area of focus is asset management, including formulating and executing plans for acquiring, holding and selling real estate and securities.
    Arrangement Results

    The projects, namely, arrangements, asset management and principal investment, in which the FGI Group was involved over the last 11 years (October 2010–September 2021) present an aggregate value of ¥942billion.

    Balance of assets under management is ¥40.1 billion

    The balance of assets under management is growing rapidly, driven by new requests for asset management services targeting investment in residences and renewable energy facilities. With addition requests going forward, the balance should hit ¥50 billion by March 31, 2023.

    Through arrangements and other financial services, the FGI Group also contributes to solutions that address ES (environment/social) issues. Results from ES-related projects are described on the sustainability page.

    Real estate asset management

    Group company FinTech Asset Management Incorporated (FAM) is involved in real estate investment management and lays out frameworks matched to different asset scale, type and location. Of note, however, the company has built a proven track record on projects, such as facility upgrades, using the real estate specified joint venture structure in Japan to deliver solutions to local issues.

    FAM’s representative director and president is a member of the community-building group within the Ministry of Land, Infrastructure, Transportation and Tourism’s investigative committee on various uses and methods for real estate specified joint venture businesses. In the utilization and application handbook for real estate specified joint venture businesses, an interim report put together by the investigative committee, FAM’s approach is presented as a good example of the real estate specified joint venture structure.

    Securities asset management

    Group company FGI Capital Partners, Inc., (FGICP) undertakes asset management related to investments in, primarily, domestic and international stocks, including unlisted stocks, as well as hedge fund operation and renewable energy power generation businesses.

    Case Studies
    Business Succession
    FGI’s support for business succession includes advisory services and the purchase of shares using its own capital.

    Strong points of the support extended by FGI and other members of the FGI Group are flexible responses customized to the diverse needs of selling shareholders and the various conditions faced by target companies as well as success in raising the value of target companies.
    FGI and other members of the FGI Group purchase shares from owner-shareholders who are struggling with a range of issues, including the absence of someone to take over the business, then work to improve value through various measures, from supporting management to streamlining operations and building a better management structure, and once value has improved, transfer the shares to a third party.

    Example of business succession support
    Example 1—After share purchase, FGI offered support to build firmer financial footing and stronger business foundation. Achieved higher business value.
    FGI utilized real estate know-how—a corporate strength—in selling non-business-use real estate of the successor company so that management resources could be concentrated in the core business and also arranged for a business partner to take advantage of high technical capabilities. Enhance financial footing and business foundation.

    Once higher business value realized, shares transferred to third party.
    Example 2— Strengthened management capabilities, and enhanced in-house management structure. Moving on to stage of further growth.
    Drawing on own network, FGI invited executives with particularly high levels of expertise to strengthen management capabilities at company assuming business. Improved revenue structure by enhancing in-house management structure. Linked stable performance to further growth to realize improvement in business value.

    Once higher business value realized, shares transferred to third party.

    Investment

    The FGI Group is involved in corporate investment, directing investments and loans into companies and operations, as well as asset investment, with a focus on real estate.

    Balance of Corporate Investment, Asset Investment  ¥6,956million
    Corporate Investment
    Through investments and loans to companies and operating projects with latent and promising futures, FGI aims to support growth and capture revenue through dividends and investment exit opportunities, including the sale of shares, once the recipient business has achieved an improvement in corporate value.

    The FGI Group approaches investments from two sides—debt and equity—targeting a range of companies, from venture companies to mid-sized companies, with growth potential. Another area of activity is investment for companies struggling with such issues as the shortage of potential successors. Details can be found on the business succession page.

    Asset Investment
    The targets of the FGI Group’s investments and loans include renewable energy–related facilities, real estate–related projects and healthcare facilities, and the goal is to maximize the value of these assets.
    Of asset investments, Metsä Village carries the largest level of investment. Details can be found on the Metsä business page.

    Metsä Business

    FGI’s involvement in the Metsä business hinges on asset investment in Metsä Village and corporate investment in Moomin Monogatari, Ltd., which operates Moominvalley Park, and its subsidiary, Rights and Brands Japan Co., Ltd.

    About Metsä
    Metsä, located in the city of Hanno, Saitama Prefecture, with Lake Miyazawa at its center, comprises two zones—Metsä Village, where visitors can experience a Nordic lifestyle, and Moominvalley Park, featuring characters from the Moomin storybooks.
    Learn more about Metsä
    Address and Site Area
    Address

    Metsä, 327-6, Miyazawa,
    Hanno, Saitama Prefecture 357-0001 Japan

    Site Area

    1. Metsä Village (area:163,000㎡)
    Stores, restaurants, workshop facilities, event space and parking etc.

    2. Moominvalley Park (area:73,000㎡)
    Stores, restaurants, cafés, entertainment facilities and etc.

    Asset Investment in
    Metsä Village
    FGI has real estate holdings at Metsä Village and rents these properties to tenants, with management and operation activities entrusted primarily to subsidiaries FinTech Asset Management and Moomin Monogatari. The plan is to design measures that will raise the added value of Metsä Village to make assets more appealing for leveraging regional revitalization and international exchange, and then securitize the assets.
    • Viking hall
      Market hall
    Characteristics of Metsä Village

    ・No cost to enter Metsä Village, which maintains the atmosphere of a public park rich in natural beauty that people can come to enjoy on a routine basis.
    ・Design showcases Nordic lifestyle and creates a Nordic mood.
    ・Market offers enjoyable shopping opportunity for sundry items under Northern European labels as well as fresh local produce and handicrafts.
    ・Restaurants provide delightful taste of Nordic cuisine.
    ・Rental boats extend enjoyment of the lake.
    ・Seasonal events and events based on various brands and community activities.

    Corporate Investment in
    Metsä
    FGI took stakes in Moomin Monogatari, Ltd., and Rights and Brands Japan Co., Ltd., as corporate investments.

    These companies function as the two wheels of a cart—the Moomin brand cart—as operator of Moominvalley Park and manager of Moomin copyrights, respectively, and together help improve corporate value as the rising value of the Moomin brand translates into expanding licensing revenue.

    In addition, the FGI Group will support efforts led by Moomin Monogatari and Rights and Brands Japan to enhance the appeal of Metsä, maximize the guest base and diversify business revenue through the operation of Metsä Village and Moominvalley Park.

    Aircraft Asset Management

    As an independent advisor to the aviation industry, SGI-Aviation Services B.V. (SGI) provides technical consulting and advisory services in the areas of aircraft and engine asset management. In association with aviner & co., inc., SGI’s parent, the company provides aircraft financing services as a specialist organization with global aviation industry experience.
    Aircraft investment and asset management requires not only specialized knowledge, such as that pertaining to aircraft and technology, but also know-how, such as financing methods, and industry connections. SGI and aviner have this kind of expertise, which has earned them trusted partner status from players in the aircraft finance domain, and underpins efforts to develop the aviation industry.

    About SGI
    SGI pursues business at a global level from its base in The Netherlands.