CEO Insights Magazine

Effective leadership is crucial for any company’s success, shaping strategic vision and fostering innovation. Strong leaders inspire their teams, drive sustainable growth, and adeptly navigate challenges to ensure enduring organizational success. Noriatsu Furukawa, CEO of Growth Partners, embodies these principles of exemplary leadership. At his previous position with Advantage Partners, he developed a unique investment strategy called the 'hands-on support type PIPES fund.' This strategy focuses on providing both capital and hands-on support to publicly listed companies while maintaining their public status, aiming to enhance sales, profits, and market capitalization to generate returns - a level of engagement that most other funds do not fully embrace. Over the past years, Furukawa has built an impressive investment track record, having invested in approximately 40 companies totaling 100 billion yen. Let’s hear more from him.

Could you share the inspiration behind founding Growth Partners & explain how you have been steering the company towards a strategic direction?

My aim is to invest in and provide hands-on support to companies at various stages, including publicly listed companies, private companies, and venture startups, while creating a community that fosters synergy among these companies at different phases. At our firm, we initially established a GP PIPES Fund, which currently stands at approximately 2 billion yen and is expected to expand. The GP PIPES Fund is designed to invest in public companies, providing them with the capital and strategic support they need to grow and thrive. Recently, we also launched a GP Buyout Fund, which is currently at approximately 1 billion yen with plans for future expansion. This fund focuses on acquiring and transforming private companies, leveraging our expertise to enhance their value and operational efficiency. To date, we have completed investments in a total of four companies and are providing hands-on support to each, ensuring they have the resources and guidance needed to succeed.
 

How have you assembled your team, & what best practices from your extensive experience do you impart to them?

We hire experienced professionals from investment banking and consulting backgrounds, enhancing their skills by having them work alongside me on actual investment and hands-on support projects. This collaborative approach ensures that they gain practical experience and insight directly from real-world scenarios. Additionally, we have already welcomed two talented investment professionals to our team, who bring their expertise and dedication to our mission. Through this method, we continuously build a strong, capable team ready to tackle various challenges in the investment landscape.

Can you describe your leadership approach? What guidelines or methodologies do you adhere to as a leader?

I believe that continuously providing challenging opportunities is essential for the growth of our team members and significantly enhances retention within the company. By offering diverse and stimulating tasks, I ensure that our team remains engaged, motivated, and committed to our mission. This approach fosters a dynamic and supportive work environment where everyone can thrive and achieve their full potential.

What are your expectations for the market in the future?

Regarding the PIPES Fund, I foresee a growing demand for growth and increased market capitalization among small and mid-sized publicly listed companies in Japan. This demand is driven by pressure from the Tokyo Stock Exchange, which is prompting these companies to seek external capital and hands-on support. Consequently, the need for such resources is expected to grow significantly. As for the Buyout Fund, I anticipate further market expansion driven by the aging population of domestic business owners. Many of these owners are now more open to selling their businesses to external entities, including funds, due to succession challenges and the evolving business environment. This shift is reducing the resistance traditionally associated with selling to external parties, thereby creating more opportunities for buyout investments. Overall, both the PIPES and Buyout Funds are positioned to capitalize on these market dynamics.

What future opportunities do you look forward to pursuing in order to lead the company and create significant impacts?

By providing capital and hands-on support to small and mid-sized public and private companies, I aim to enhance their performance and corporate value, thereby benefiting all stakeholders involved, including customers, management, employees, and shareholders. In the future, I plan to extend our investments and hands-on support to overseas companies, recognizing the vast potential for growth and value creation beyond domestic markets. Additionally, I am eager to explore and implement innovative investment strategies that go beyond traditional corporate investments. These new strategies will allow us to diversify our portfolio and seize emerging opportunities in various sectors. Through these efforts, I strive to lead the company into a future marked by significant impact and sustained growth, contributing positively to the broader business ecosystem.

What guidance would you offer to emerging industry leaders?

I encourage budding industry leaders to boldly embrace new challenges. In today's global economy, a broad perspective is crucial for significant growth, especially for Japanese companies. Embracing a global outlook will be pivotal to your success. I urge you to adopt this viewpoint early on and leverage it to drive innovation and expansion within your organization.

Noriatsu Furukawa, CEO, Growth Partners

Noriatsu Furukawa is a seasoned leader in investment management, specializing in supporting small to mid-sized companies through capital and hands-on guidance. With a focus on enhancing corporate performance and value, he aims to benefit stakeholders across all levels. Furukawa advocates for a global perspective in business growth, particularly for Japanese firms, urging industry leaders to embrace challenges and drive innovation for sustained expansion.