Dec. 20, 2010
Sumitomo Mitsui Banking Corporation
The Sumitomo Trust and Banking Co., Ltd.
Capital Contribution to Fund Investment Management Company and Private
Equity Fund to be Organized by the Company
Sumitomo Mitsui Banking Corporation ("SMBC," President: Masayuki Oku), Sumitomo Corporation ("Sumitomo Corp," President & CEO: Susumu Kato) and The Sumitomo Trust & Banking Co., Ltd. ("STB," President & CEO: Hitoshi Tsunekage) announced today that they had, either directly or through a subsidiary*, made a joint contribution to private equity investment management company Rising Japan Equity, Inc. ("the Company").
Each sponsor has additionally decided to make contributions to a private equity fund that will be organized by the Company effective January 1, 2011.
The Company will carry out buy-out investments in order to effectively provide funds through the private equity fund it will organize to meet the needs of all potential domestic investee companies, including needs for growth capital, business succession, company split-up or management buyouts by purchasing common stocks, classified stocks, new share subscription rights, warrant bonds and others issued by such domestic investees. The Company will also offer management resources and other hands-on support to each investee company in order to enhance the enterprise value of investees. Moreover, each sponsor will not only explore potential investment opportunities contained within existing customer bases for the Company, but also provide comprehensive support for such domestic investees in order to improve enterprise value by, in the case of SMBC and STB, proposing financial solutions and, in the case of Sumitomo Corp, making its global business bases available.
SMBC, Sumitomo Corp and STB regard the Company and the private equity fund it will organize and manage as a strategic investment vehicle intended to make buyout investments in domestic companies and expect it to contribute to the economic revitalization and activation of Japanese industries.
* Nikko Cordial Securities Inc., SMBC's wholly owned subsidiary, made a capital contribution to the Company
Corporate Communications Department,