Advantage Partners' AP Fund has invested in Nihonkasei Co., Ltd., a leading manufacturer of wet building materials in Japan, aiming to strengthen the company's operational foundation and drive innovative growth in response to industry challenges.

Target Company Overview

The special purpose company invested in by Advantage Partners' AP Fund has successfully completed an investment in Nihonkasei Co., Ltd. (referred to as "Nihonkasei"). This investment was developed with the assistance of notable consultancies including A.T. Kearney, CPA Partners, KPMG, and Nishimura Asahi Law Firm.

Nihonkasei is a leading player in the wet building materials industry, specializing in the manufacturing and sales of plastering and tiling materials. Established in 1948, Nihonkasei has developed a robust business and customer base over the past 76 years. Its flagship product, "Highflex," has become synonymous with water retention agents in the industry, and its offerings are predominantly utilized in large construction projects such as redevelopment, commercial facilities, office buildings, and condominiums. Nihonkasei is highly regarded for its product quality by plasterers, tile setters, dealers, and general contractors alike.

Industry Overview in Japan

The construction industry in Japan is facing significant challenges, particularly a critical labor shortage that threatens construction timelines and project efficiency. With an aging workforce and a diminishing number of young workers entering the indu