SPARX Asset Management Co., Ltd. (SAM), a subsidiary of SPARX Group Co., Ltd. (TSE Prime: 8739), has unveiled the establishment of the Space Frontiers Second Fund, marking a significant stride in fostering innovation and technological advancement in the space industry. Backed by a consortium of prominent companies, the Fund aims to propel Japan’s presence in the global space sector while driving societal progress through cutting-edge technologies.
The seven companies supporting the Fund as limited partners include industry giants such as Toyota Motor Corporation, MUFG Bank, Ltd., Sumitomo Mitsui Banking Corporation, Mizuho Bank, Ltd., Mitsubishi Heavy Industries, Ltd., Sumitomo Mitsui Trust Bank, and Development Bank of Japan Inc. Leveraging the success model of the Space Frontiers Fund launched in June 2020, the Second Fund is poised to galvanize human resources and technology development in space-related industries, nurturing globally competitive Japanese space companies and catalyzing technological innovation across Japan.
Outlined below are key details of the Space Frontiers Second Fund:
Founding Principles:
- Accelerate innovation by investing in projects with technologies and business models driving growth toward the society of the future.
- Showcase a new pioneering capacity by assembling a portfolio of companies discovered through the Fund.
Target Functions:
- Invest in startups engaged in space-related businesses with superior technologies and unique business models, alongside related projects bolstering the foundations of the space industry.
- Promote these technologies and services throughout society by collaborating with governments and other industries.
Summary:
- Scheduled to commence operations in April 2024 under SAM’s management, with a total capital backing of approximately JPY 11.0 billion.
- Open to additional subscriptions from investors aligned with the Fund’s purpose until September 30, 2024.
Fund Details:
- Fund Name: Space Frontiers Second Investment Limited Partnership
- Portfolio Companies: Space-related startups and projects with superior technologies and unique business models
- Investors:
- General Partner: SPARX Asset Management Co., Ltd.
- Limited Partners: Toyota Motor Corporation; MUFG Bank, Ltd.; Sumitomo Mitsui Banking Corporation; Mizuho Bank, Ltd.; Mitsubishi Heavy Industries, Ltd.; Sumitomo Mitsui Trust Bank; Development Bank of Japan Inc.; and SPARX Group Co., Ltd.
- Fund Size: Approximately JPY 11.0 billion (as of April 26, 2024)
- Subscription Target: At least JPY 15 billion
- Additional Subscription Period: Until September 30, 2024 (To be confirmed)
The launch of the Space Frontiers Second Fund underscores Japan’s commitment to advancing its space industry, harnessing innovation, and driving economic growth. With support from leading industry players, the Fund is poised to catalyze transformative developments in space technology, positioning Japan at the forefront of the global space race.
