Tokai Tokyo Investment partners with SDF Capital for startup debt market

Tokai Tokyo Investment (TTI) has formed a strategic capital and business alliance with SDF Capital, a specialist in startup debt funds. This partnership, announced on September 30, 2025, aims to develop Japan’s startup debt market by combining Tokai Tokyo Financial Group’s (TTFG) customer base and sales network with SDF Capital’s expertise. As part of the agreement, TTI will make a phased investment to acquire 33.5% of SDF Capital’s outstanding shares, making it an equity-method affiliate of TTFG.

TTFG plans to support fundraising for SDF Capital’s second fund, projected for launch in 2026 with a target size of 20 billion yen, leveraging its network of financial institutions and high-net-worth individuals. Additionally, TTFG will explore structuring a private debt fund denominated in Japanese yen as a new investment product for clients and build a comprehensive support platform for startups across Japan, encompassing equity, debt financing, and IPO support.

SDF Capital, established in May 2022, operates Japan's first independent startup debt fund, having executed 27 loans totaling 7.2 billion yen to date. This alliance aligns with TTFG's medium-term management plan, which identifies private debt as a strategic focus.