Chugin Fund Invests In SoVa Again, Underwrites First Bonds With Share Options
A regional fund adding a debt instrument to its equity playbook on an existing portfolio company shows a funding approach for the gap between equity investment and lending at a single firm.
Reporting from 1 source: ASCII.jp.
Chugin Capital Partners has put more money into SoVa Co., Ltd. through Chugin Infinity Fund No. 2 and has underwritten bonds with share options issued by the company through Chugin Infinity Fund No. 3. The funding is the fourth round for the Tokyo accounting firm, following investments in April 2023 and August 2024. The bond underwriting is a first for Chugin Capital Partners.
The investment and underwriting are the fourth round of funding for SoVa, which is based in Chiyoda-ku, Tokyo, and led by representative director Kentaro Yamamoto. SoVa runs an accounting firm that combines technology with tax accountants and labor and social security attorneys, building databases of their knowledge and know-how. It provides back-office support such as accounting and labor affairs on a monthly fee basis and management services covering tax-saving, subsidy, cost-reduction, and cash-flow proposals.
Chugin Capital Partners director Rei Ishimoto said the bonds with share options let the firm provide funds while curbing dilution of portfolio companies' shares, and can address funding needs that lie between equity investment and lending.
Synthesized by Yomimono from the 1 cited source below, including Japanese-language reporting where cited, then editorially reviewed before publishing.