Multiples and IRRs

Since 1988, JAPONICA PARTNERS has built our track record by creating transformational investments with low risk high return.

Japonica's transformational investments have three building blocks: discover systemic misconceptions, discover a massive undervaluation, and create extraordinary value. For internal management purposes, Japonica measures its investment track record according to the best practice Global Investment Performance Standards (GIPS). Japonica is not a fund and does not provide investment advice.

Greek Government Bonds: One of the largest private owners of Greek government bonds (GGBs), improved Greek government public financial management and launched a $3.8 billion (€2.9 billion) unmodified Dutch auction tender offer for select GGBs. An 8.9x multiple on capital invested at exit (4.3x initial capital) and 35% IRR after about 5 years with no leverage.

Sunbeam-Oster Company: Majority stockholder and assumed key C-level executive positions (chairman, CEO, and CFO), lead the US$1.5 billion turnaround of Fortune 300 Sunbeam-Oster Company. A 5.9x investment multiple and 104% IRR in 3 years with investment grade corporate leverage.

CNW Corp: Largest stockholder in one of the biggest railroad holding companies in North America, CNW Corp., commenced US$1.6 billion white knight tender offer and full board proxy to maximize shareholder value. A 2.2x investment multiple and 57% IRR in 1.5 years with no leverage.

Allegheny International: Largest creditor and sole proponent of successful joint plan of reorganization; the US$690 million successful bankruptcy reorganization of Fortune 200 Allegheny International. Invested in senior secured bank loans and other classes of debt via private party purchases and a tender offer. A 1.3x investment multiple and 181% IRR in 7 months with no leverage.

Borden Inc.: Lead sponsor and global institutional investor organizer, proposed a US$2.4 billion restructuring of Fortune 100 Borden Inc., but withdrew the restructuring proposal following adoption of scorched earth tactics by the company’s then incumbent management.

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