Hinoki

About Hinoki

Hinoki Inc. operates as a business succession platform focused on the long-term continuity of small and medium-sized enterprises (SMEs) in Japan. The company was established in March 2026 by Ryota Kawahara, who serves as the CEO. Kawahara's background includes executing large-scale M&A investments at Mitsui & Co., serving as CFO for an automotive finance company in Chile, and leading an AI startup, experiences that inform Hinoki's strategy. In August 2026, the company announced a significant funding round of approximately 3.1 billion yen ($19.4M) from investors including Dual Bridge Capital and JP Life Next Fund. Hinoki's core business model is centered on acquiring SMEs with a permanent ownership philosophy, which contrasts with the typical private equity model of buying and selling companies within a few years. This approach is designed to address the anxieties of business owners concerned about the future of their company's legacy, brand, and employees. Hinoki respects the independence of the companies it acquires, preserving their names, culture, and employment. The firm primarily targets profitable SMEs with an EBITDA between 100 million and 1 billion yen, often in sectors with steady demand like specialized trading and industrial maintenance. Post-acquisition, Hinoki provides comprehensive management support to enhance the value and potential of its portfolio companies. This is achieved through a proprietary set of best practices called the "Hinoki Playbook," which covers improvements in personnel, business processes, systems, and the integration of AI. The company is also establishing the "Hinoki Business School" to cultivate the next generation of management talent from both within and outside the group, creating a community for sharing knowledge and experience. With a goal of acquiring 20 companies over the next decade, Hinoki is building a network with M&A intermediaries, financial institutions, and business owners to create a sustainable cycle of business succession.