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Investment Track Record
Tower Records
Tower Records Japan Inc.
Date of Investment: October 2002
Representative MBO/LBO deal
Business overview
Importing, wholesaling and retailing of CDs, videos, books, etc. (No. 1 music CD retailer in Japan)
The deal
·  Invest in a market leader with high brand awareness
·  Stable cash flow with growth potential
·  Experienced management with a strong track record
Transaction details
CCPJ acquired all shares of Tower Records Japan as well as the Tower Records trademark in Japan from its US parent, MTS, Inc., with the transaction debt financed by internationally syndicated banks.
Past performance and recent developments
·  Implemented performance-based incentive bonuses and stock options for management
·  Apr. 2004: Acquired WAVE, Parco’s CD retail company, as part of the build-up strategy
·  Oct. 2005: Established Napster Japan Inc., a digital music distribution joint venture
·  Nov. 2005: Entered into capital alliance with NTT DoCoMo
( > :A new window will be opened.)
Portfolio Summary
Private Equity Investment
Socie World Co., Ltd.
StylingLife Holdings Inc.
SEIBU HOLDINGS INC.
Smile Staff Corporation
BELLSYSTEM24, inc.
Nikko Asset Management Co., Ltd
Tower Records Japan Inc.
*Post in investment date order  
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