Japonica Partners has expanded its Top Quartile IRR Hurdle Rates with a global stock index alternative — the MSCI World index plus 500 basis points. Japonica Partners has expanded its Top Quartile IRR Hurdle Rates with a global stock index alternative — the MSCI World index plus 500 basis points. Japonica Partners has overseen the creation of approximately USD 2.0 billion in shareholder wealth since its founding in 1987. A long-time industry innovator, Japonica has achieved triple-digit returns without relying on excessive financial leverage.
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Japonica’s patent-pending Top Quartile IRR Hurdle Rates demand performance superior to major asset class benchmarks. By design, they cultivate entrepreneurial ROIs.
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“The global capital markets will benefit greatly by adopting our Top Quartile Hurdle Rates,” commented Japonica Partners Founder & Managing Director Paul B Kazarian. “The structure better aligns co-investor interests.”Â
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Japonica’s other patent-pending Top Quartile IRR Hurdle Rates are both relative and absolute return: 1,000 basis points above the 3-month US Treasury Bill; 500 basis points above the S&P 500 or S&P 400 indices; 500 basis points above the MSCI Europe index; and 15 per cent fixed.
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Other innovative features of the patent-pending IP are: cash-based accounting; profit sharing only after 100 per cent return on investment and Top Quartile IRR Hurdle Rates; no annual management fee or advisory fees; and operating management foregoing industry standard incentive compensation. Â
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Background notes: Japonica Partners is a global management and investment firm with an entrepreneurial co-investor business model. Japonica’s core competencies are “DCC”: Discovering Value Gaps, Changing cultures & operations, and Creating value through hands-on management.
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Japonica’s four major situations include: the USD 630 million reorganization of 12 Allegheny International businesses; creating Sunbeam-Oster, a Fortune 356 global consumer products company; a USD 1.6 billion proactive white-knight tender offer for Chicago Northwestern; and a proactive USD 2.4 billion proposal to rejuvenate Borden, the beleaguered USD 7 billion conglomerate.
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