ADL and Aozora Bank Launch Japan’s First “Strategy Consulting × Banking” Corporate Growth Partnership Model Driving Innovation and Growth Through “Expertise and Capital”

Arthur D. Little Japan, Inc. (Headquarters: Tokyo; Japan Market Representative: Kensuke Sobue; hereinafter "ADL") and Aozora Bank, Ltd. (Head Office: Tokyo; Representative Director, President and CEO: Hideto Oomi; hereinafter "Aozora") established "AOZORA ADL SOLUTIONS Co., Ltd." (hereinafter "the JV") on August 18, 2026, as part of Japan's first* "Strategy Consulting × Banking" corporate growth partnership model that combines the expertise of both companies to support the transformation and sustainable growth of Japanese companies.

Since its founding in 1886, ADL has supported the transformation and innovation of companies and industries, guided by the spirit of "Who says it cannot be done?" Meanwhile, Aozora, guided by its founding philosophy of "pioneering new fields considered challenging by society," has developed innovative financial solutions that go beyond conventional frameworks-from its involvement in Japan's LBO finance since the market's inception to, more recently, equity investments with a primary focus on engagement in listed companies.

Throughout their long histories, both companies have grown by viewing challenging periods brought about by changes in market conditions as opportunities for growth. Based on these shared values and business philosophies, Aozora proposed this initiative to ADL, and subsequent discussions led to the establishment of the JV. The two companies, which have each tackled innovation and corporate transformation in their respective fields, each contributed capital on a 50:50 basis to build a new model for supporting businesses.

Investment vehicles established through the JV will primarily make minority investments. Rather than acquiring management control to transform companies, it aims for "collaborative investment" by providing capital and management expertise while allowing management to retain the lead. To achieve this, ADL-a strategy consulting firm-will move beyond the traditional advisory role to become an "active participant committed to delivering results," taking on an integrated role that spans its investment in the JV, the formulation of management strategies, the execution of transformation, and the enhancement of corporate value.

This is neither strategy consulting alone, nor lending, nor a buyout. While respecting management's autonomy, the model combines the "management expertise" of a strategy consulting firm with the "financial and capital capabilities" of a bank, providing not only capital but also the strategy and execution capabilities needed to drive growth.

In Japan, there are numerous companies that possess excellent technology, brands, talent, and customer bases but have not fully converted that potential into corporate value. In fact, listed companies with a market capitalization of less than 50 billion yen account for approximately 70 percent of the total in Japan (compared to about 30 percent in the U.S.). Unlocking the latent value of these companies has therefore become an important challenge for Japan's capital markets and broader industrial landscape.

Meanwhile, the business environment surrounding Japanese companies is also changing. In April 2026, the Tokyo Stock Exchange updated its guidelines on "Management That is Conscious of Cost of Capital and Stock Price," with a focus on the appropriate allocation of management resources. Furthermore, the trend of leveraging external resources and capital for growth is gaining momentum, as evidenced by the number of M&A deals reaching a record high of 4,700 in 2024, based on publicly disclosed figures.

The role of external capital is also expanding beyond business succession and corporate revitalization to become a means of achieving "the next phase of growth," including new business ventures, M&A, overseas expansion, and digital transformation (DX). In this environment, there is a growing need for new options that allow companies to maintain management autonomy while simultaneously securing growth capital and strategy and operational capabilities.

Through the JV, we will begin supporting primarily small- to mid-cap companies. By leveraging investments, consulting, and financial solutions, we aim to become a key partner that provides support to enhance corporate value for 1,000 companies-representing just under 30 percent of Japan's approximately 3,700 listed companies.

*Based on research by both companies. This is the first business model in Japan to provide integrated minority investments and strategic and transformation support through a company jointly funded by a strategy consulting firm and a bank.

Purpose and Rationale for Establishing the JV

• Beyond Advisory: Committing to Outcomes with "Expertise and Capital"

ADL, as the consulting firm, will also invest in the JV and commit to enhancing the corporate value of the portfolio companies. We connect strategy formulation, transformation execution, capital policy and financing, partnering with portfolio companies through to tangible results.

• "Collaborative Investment" that Adds Management Expertise and Capital without Taking Control

Rather than seeking management control through a buyout, the investment vehicles established through the JV will primarily make minority investments. While respecting management's decision-making, the portfolio company, the bank, and the consulting firm work as one to jointly contribute strategy and execution capabilities.

• A New Capital Option for the "Next Stage of Growth"-Beyond Business Succession

We provide an integrated combination of capital and management support for growth initiatives, including strengthening existing businesses, launching new businesses, pursuing M&A, expanding overseas, driving digital transformation (DX), and reshaping business portfolios.

• Turning "How We Want to Transform Our Company" into Reality

For example, for manufacturers with strong technological capabilities but a heavy reliance on the domestic market, the JV will help strengthen their core businesses before pursuing new markets and overseas expansion. For owner-managed companies with strong business foundations, it will support the transition to next-generation management and business expansion through M&A. For companies with mature businesses, it will support business portfolio transformation and the creation of new businesses. Building on each company's unique strengths, the JV will define and execute a strategy for the company's next stage of growth.

Initiatives of the JV

The JV combines ADL's strategy and transformation capabilities with Aozora Bank's investment banking capabilities to provide integrated support spanning corporate growth strategy and capital strategy development, investment, and transformation execution.

ADL will leverage its extensive expertise in strategy and business transformation to lead the development and execution of value creation strategies for portfolio companies. It will focus particularly on initiatives that drive the next stage of growth, including strengthening existing businesses, innovation, new business development, business portfolio transformation, and overseas expansion.

Aozora Bank will leverage its expertise in areas such as engagement investment and structured finance to lead deal structuring, the establishment and management of investment vehicles, and investment and exit execution. It will also provide financing and other financial solutions required for growth, supporting corporate transformation from a financial perspective.

Overview of the JV

Arthur D. Little Japan, Inc.

Founded in 1886 by Dr. Arthur Dehorn Little of the Massachusetts Institute of Technology (MIT) as the world's first strategy consulting firm. Arthur D. Little Japan, the firm's Japanese subsidiary, was established in 1978 and has supported the transformation of Japanese industries and companies for nearly 50 years, with a focus on creating innovation and co-creating "The Difference" with its clients.
The Tokyo office is the largest among the 14 offices in Asia and Oceania and plays a central role in the Asian region. Leveraging a network of over 6 million innovators, entrepreneurs, engineers, and scholars, as well as our knowledge and insights, Arthur D. Little provides creative and effective open consulting to a wide range of industries-both public and private-and supports the implementation of transformation in companies, industries, and society "Side by Side."

Company Name: Arthur D. Little Japan, Inc.
Japan Market Representative: Kensuke Sobue
Headquarters: 36th Floor, Shiodome City Center, 1-5-2 Higashi-Shimbashi, Minato-ku, Tokyo
URL: https://www.adlittle.com/jp-ja

Aozora Bank, Ltd.

Established in 1957 under the Long-Term Credit Bank Act, Aozora has developed deep expertise, knowledge, and experience through its involvement in Japan's LBO finance since the market's inception, as well as in business recovery finance and real estate finance. The Bank also has a strong nationwide network of regional financial institutions developed through the issuance of bank debentures. Drawing on these strengths, Aozora aims to grow together with its customers. Under the brand concept of "Aozora Bank-Creating Possibilities," Aozora is committed to its management philosophy "Contribute to the development of society through the creation of new value-added financial services," as well as its corporate vision "Adapt to a rapidly changing world while remaining a trusted, valued and specialized financial service provider," with the aim to achieve sustainable growth and contribute to society as a financial professional.

Company Name: Aozora Bank, Ltd.
Representative Director, President and CEO: Hideto Oomi
Head Office Address : 6-1-1 Kojimachi, Chiyoda-ku, Tokyo
URL ： https://www.aozorabank.co.jp/