GENKAI Capital Management

GENKAI Capital Management (GCM) has entered its ninth year since its founding. Real estate prices that had been driven too high by greed are being reassessed in the Japanese real estate market as exemplified by the trend toward deleveraging, refinancing, and capital replacement in the wake of the global financial crisis. There is a shift under way toward additional funding and participation from those with a more levelheaded, long-term perspective. At the time of its establishment, GCM engaged in the equity business in the form of real estate investment fund management. However, for a period of about five years after the onset of the financial crisis, our business centered around debt advisory services, mainly for restructuring. We are pleased that circumstances have finally started to permit us to return to the former and to create a new fund. GCM is entering a challenging new phase as one of few independent firms among major real estate development companies in the Japanese market. Reaffirming our corporate mission, we are positioning financial limited partnerships (and eventually individuals) as our ultimate clients, and will continue to explore various investment opportunities. Our corporate philosophy is encapsulated in our slogan, "Creating a new standard for real estate investment management in Japan". In keeping with this philosophy, we are committed to developing business in accordance with our code of conduct noted below as a firm that manages investments from the perspectives of its investors. 1. Are we fulfilling our fiduciary duty to our investors with professional pride? 2. Are we operating with full in-house communication and a high level of governance and transparency? 3. Are we taking up challenges and being innovative instead of being bound by conventional approaches? I am determined to promote our business under our corporate philosophy and code of conduct and look forward to receiving your continued support.