Global private equity firm The Riverside Company has completed its first exit from the Riverside Asia-Pacific Fund I. The sale of Japanese coin parking lot operator Shinsouki to iSigma Capital comes after four years of steady organic and add-on growth following Riverside’s 2008 acquisition.
The Riverside Company has completed the first exit from its Riverside Asia-Pacific Fund I (RAF I). The successful realization of Japanese coin parking lot operator Shinsouki comes after four years of steady organic and add-on growth following Riverside’s 2008 acquisition.
“As the first platform investment Riverside ever made in the Asia-Pacific region, Shinsouki presented a unique opportunity for growth. We overcame a lot of macroeconomic challenges in Japan as we built the company into the success that it is today. We’re proud to leave Shinsouki bigger and better.”
Shinsouki is the largest operator of parking lots in Niigata City. Through the 2009 acquisition of MAOS, the company added a strong presence in Tokyo. Most of the lots the company operates are unmanned, and built on leased land in high-density areas. The company combines deep knowledge of its geographies with close relations with landowners to develop lots in favorable and profitable areas. Shinsouki and MAOS collectively operate and manage more than 8,000 parking spaces.
“This is a tremendously rewarding realization for a variety of reasons,” said RAF Fund Manager Stuart Baxter. “As the first platform investment Riverside ever made in the Asia-Pacific region, Shinsouki presented a unique opportunity for growth. We overcame a lot of macroeconomic challenges in Japan as we built the company into the success that it is today. We’re proud to leave Shinsouki bigger and better.”
Riverside recognized Shinsouki’s potential from the beginning. Though it was a stable and profitable company, it had room to improve both from a management perspective, and through organic and add-on growth. The addition of MAOS allowed Shinsouki to add the largest market in Japan while gaining valuable management expertise. Riverside Operating Partner Tokihiko Mori also played a key role in the development of Shinsouki throughout the period of the investment, working closely with Shinsouki management to help implement new systems, oversee operations, and drive aggressive growth plans.
The integration of MAOS went particularly smoothly, as both companies shared a similar culture, approach and goals. MAOS CEO Akihiko Masuda transitioned to CEO of Shinsouki following the merger, introducing a strong sales culture and successfully managing the profitability of the portfolio of lots while expanding the company outside the Niigata prefecture.
“Riverside has been an excellent partner,” said Masuda. “They worked closely with us and focused on growing our business. The combined company was transformed under Riverside’ s period of ownership and is now poised for the next level.”
Shinsouki Founder Yukio Tabuse is happy with the transaction.
“I am pleased to see my company is succeeded by a strong leader like Masuda, and to see my employees happy and motivated to achieve further growth,” Tabuse said.
Working with Baxter for Riverside on the sale of Shinsouki to iSigma Capital were Partner Tokihiko Mori, Partner Kiyofumi Nakano and Vice President Hiroaki Wakashita, of Riverside Partners KK, Riverside’s advisory company in Japan.
Lincoln International advised Riverside on the sale of Shinsouki, and Jones Day provided legal counsel to the sellers.
The Riverside Company is a global private equity firm focused on acquiring growing businesses valued at up to $200 million (€200 million in Europe). Since its founding in 1988, Riverside has invested in more than 280 transactions. The firm’s international portfolio includes more than 80 companies, and it has more than $3 billion/€2.5 billion in assets under management
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