September 19, 2012

DRC Exits From Yumeshin Holdings At 1.5x

DRC Capital has sold its investment in Yumeshin Holdings, a staffing company specializing in construction workers. DRC invested JPY 920 million (USD 12 million) to acquire a 7.6% stake in the company in February 2007. Since the minority acquisition, DRC guided the company to focus on the core competence and helped restructure the swollen balance sheet. The GP believes the operational improvements have helped Yumeshin shares to out-perform peers and general equity market. This 5.5 year PIPE investment achieved 1.5x ROI with a gross IRR of 8.3% p.a..  During the corresponding period,  Nikkei Index fell by 49% (-11.3% p.a.) due to the Lehman Crisis and 3.11 Tohoku earthquake.

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