September 12, 2012
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Japanese Limited Partnership DRCI exited from its investment in Yumeshin Holdings which it made in 2007. It achieved an investment return of 8.3% p.a. in gross IRR and 1.5 times in money multiple over the 5 and a half years of its holding, during which time Nikkei Index fell by 49% (-11.3% p.a.). Since the investment was made, DRC Capital has been instrumental in refocusing the company's strategy on its core business of dispatching engineers so that it could start afresh for growth. As a consequence, the profits based on the core business have improved significantly. The investment return mentioned above derives largely from such improved performance. This is a typical case of DRC Capital's investment policy of creating investment returns by enhancing the intrinsic value of the investee company, independently of the stock market trend.
