Home Page (English)

Japan is the third largest economy in the world and home to an estimated 3.6 million Small and Medium Enterprises (SMEs).

As Japan’s baby boomer generation of business owners reach retirement age, a large number of these SMEs will need to find new owners.

The Ministry of Economic, Trade and Industry (METI) estimates that 600,000 profitable SMEs are at risk of closure due to lack of successor, a phenomenon referred to as “black ink bankruptcy”. METI has recognized this as a major concern as the SME sector is a critical component of the Japanese economy.

An aging population is inevitably now a reality for almost all developed countries in the world. Our view is that Japan is no different but simply at the forefront of the demographic curve.

We therefore see an opportunity to contribute to the solution and create a bridge to the future for Japanese SMEs.

We will do this by introducing and constructing an innovative investment holding structure for these SMEs to grow and prosper long into the future.

We have long been inspired by the Berkshire Hathaway investment approach and its focus on long-term value creation irrespective of economic cycles.

We found a group of highly successful investment companies from the Nordic region known as the Swedish Serial Acquirers who have successfully adopted the Berkshire Hathaway investment holding company model to the Swedish Small and Medium Enterprises (SME).

These Serial Acquirers focus on quality businesses, with a perpetual investment horizon and underpinned by a de-centralized operating model.

This strategy has been highly successful in establishing secure and lasting homes for hundreds of Swedish SMEs, while also generating exceptional returns for investors over a long horizon.

We are adopting a similar approach to establish secure and lasting homes for Japanese SMEs.

Please see below for latest news and press releases from Pinecone.

Please see below for relevant articles and resources on Japan’s SME sector.