JAFCO Group Co., Ltd.
8595・Prime Market・Securities & Commodity Futures
Business
JAFCO Group Co., Ltd. is an independent venture capital firm established in 1973 and listed on the Tokyo Stock Exchange First Section (now Prime Market) in 2001. The company raises capital from institutional investors and corporations to form funds, conducting venture investments and buyout investments in promising unlisted companies. In April 2025, the company decided to focus on domestic investment and completed the transfer of all shares in its Asian subsidiary (JIAP) and U.S. subsidiary (Icon). It has now transformed into a pure domestic-focused fund management company that operates only domestic funds. The company deeply engages in the management of its portfolio companies as a "CO-FOUNDER," realizing capital gains through EXITs via IPOs and M&A. The total commitment amount of funds under management is ¥312,800 million, with an outstanding investment balance of ¥154,785 million across 215 companies.
Business Model
Revenue sources consist of two pillars: ① management fees (linked to assets under management) and performance fees (linked to investment performance) received from funds, and ② capital gains attributable to the Company's direct investment interests in funds. In the fiscal year under review, investment partnership management income (domestic investments) was ¥3,544 million, and capital gains (domestic investments) were ¥9,467 million. The Company's current investment ratio in funds stands at 34.7%, and the policy is to gradually reduce this to 20% over the medium to long term in order to enhance capital efficiency.
Company Strengths
As a pioneer in Japan's domestic venture capital industry since its establishment in 1973, the company has built up a solid investment track record. As of the end of March 2026, it held 16 funds under management or in extension, with total commitments of ¥312,800 million and an investment balance of ¥154,785 million across 215 companies (including 192 unlisted companies totaling ¥151,861 million), forming a substantial portfolio.
As of the end of March 2026, net assets stood at ¥134,113 million, the equity ratio was 85.0%, and cash and cash equivalents totaled ¥61,183 million, reflecting an extremely solid financial foundation. The company has adopted a dividend policy of paying whichever is greater of DOE 6% or a payout ratio of 50%, and paid an annual dividend of ¥133 per share for the fiscal year under review. The policy of allocating surplus cash to share buybacks also continues.
Through the partnership model introduced in 2018, the company has built a flat organizational structure centered on partners who bear responsibility for fund management. Starting with the SV6 Fund, partners and employees have also invested alongside the company in the funds, establishing a framework in which they bear investment risk personally while receiving performance-linked compensation tied to fund performance. The aim is to enhance sustainable investment management capability without excessive dependence on individuals.
ENVALITH's Perspective
Performance Trend
Revenue for FY2026 (ending March 2026) was ¥21,619 million (down 23.3% from ¥28,192 million in the prior period), operating profit was ¥5,607 million (down 53.5% from ¥12,066 million), and net income attributable to owners of parent was ¥6,576 million (down 31.7% from ¥9,632 million). The main cause was a contraction in capital gains resulting from a sharp decrease in the number of new IPOs, from 8 companies to 2 companies. In addition, a change in accounting treatment (from gross method to net method) associated with the transfer of JIAP and Icon shares altered the recognition structure of revenue and cost of sales, and a loss of ¥2,073 million on management of other companies' funds was recorded as non-operating expenses. On the other hand, dividend income of ¥2,429 million from JIAP and Icon (non-operating income), as well as gain on sale of subsidiary shares of ¥350 million and gain on sale of investment securities of ¥2,143 million (extraordinary income), supported net income for the period. As shown by the trend over the past five periods (operating profit of ¥16,876 million in FY2022 → -¥4,414 million in FY2023 → ¥8,175 million in FY2024 → ¥12,520 million in FY2025 → ¥5,607 million in FY2026), large performance fluctuations linked to the IPO market environment (an external factor) continue as a structural characteristic.
Growth Strategy
Three-pillar strategy of concentrating on domestic investments, forming the SV8 series, and improving capital efficiency
The SV8 series, established in December 2025, had reached a scale of approximately ¥58.0 billion as of April 24, 2026, and fundraising continues with a target of exceeding the previous SV7 series' total of over ¥97.8 billion. Completion of the formation is expected to lead to a stable accumulation of management fee income.
The company holds an unlisted equity investment balance of ¥151,861 million (215 companies) and unrealized gains of ¥16,996 million on listed operational investment securities (domestic investments); if EXITs via IPOs and M&A progress, large-scale capital gains are expected to be realized. In FY2026 (ending March 2026), IPOs were limited to only 2 companies, indicating sluggish progress.
The company maintains a policy of setting the annual dividend amount at whichever is greater between a DOE of 6% and a payout ratio of 50%. In FY2026 (ending March 2026), a dividend of ¥133 per share (total dividends of ¥7,015 million) was implemented, together with share buybacks of ¥4,999 million, resulting in total shareholder returns. For the next fiscal year, an annual dividend of at least ¥133 per share (minimum amount) is planned.
The transfer of all shares in JIAP (Asia) and Icon Ventures (US) was completed between October 2025 and January 2026, leading to a transition to non-consolidated (standalone) financial statements. A structure has been established to concentrate management resources on domestic fund management. Improved transparency of financial statements and faster decision-making are expected.
Last updated: July 19, 2026