NEWS RELEASE
Apr 25, 2024
For Immediate Release
Japan Impact Investment II Limited Partnership

Renew Fund Logic Model and Release Impact Report 2023

Japan Impact Investment II Limited Partnership (hereinafter, "HATARAKU FUND") has recently released an
updated logic model that shows the path to realize the fund's ultimate goal (Super Goal), as well as an impact
report that summarizes the impacts created by the fund as a whole and the progress of impact measurement
and management*1 ("IMM") of the 11 investee companies.
HATARAKU FUND is jointly managed by Shinsei Impact Investment Limited and Japan Social Innovation andInvestment Foundation with advisory from Mizuho Bank, Ltd., and has received commitments from multiple
institutional investors. The fund aims to support the growth of portfolio companies and expand social impacts
by making impact investments*2 in businesses related to childcare, elder care, and new work styles..
The purpose of this renewal of the fund logic model is to reflect on what the fund has learned through its
investment activities over the past five years and provide guidance for fund members in making decisions
regarding future activities related to supporting portfolio companies, exits, building an impact investment
ecosystem, and strengthening the fund's non-financial capital, such as human resources and information.
As a leading full-fledged impact investment fund with multiple external investors participating in Japan,
HATARKU FUND’s updated logic model has two Super Goals: to "create diverse ways of working and living"
through the portfolio companies as an investor, and to contribute to "building an impact investing ecosystemin Japan". We have analyzed the financial and non-financial capital that is important and strong for the fund towork toward the realization of the Super Goals, and defined "Human Resources," "Information," and "Capital”
as inputs. We then improved the perspectives and path for the realization of the Theory of Change regarding
the process of inputs, activities, outputs, outcomes, and contributions to the realization of the Super Goals inresponse to the social and financial system challenges faced by Japan.
HATARAKU FUND has published Impact Report annually since its operation in 2019. Besides the updated
logic model, Impact Report 2023 has also included the recent impact investment trends, the fund’s ecosystembuilding activities, the progress of the fund’s IMM implementation, the progress of IMM process development
and revision through the signing of the Impact Principles and independent verification by a third party, and theIMM progress of all portfolio companies including newly invested Antway Inc. and BPO Technology Inc.
*1. An iterative process that involves identifying and considering both the positive and negative impacts of business activities on people and theplanet, and then finding and implementing ways to reduce negative impacts and maximize positive impacts consistent with one's objectives.
*2 Investment actions intended to simultaneously generate positive and measurable social and environmental impact alongside financial returns.

[HATARAKU FUND Logic Model (updated 2023)]
InputsActivities

Outputs

Short-term Outcomes

Mid-term OutcomesLong-term Outcomes"Transformation of Individuals"
The options increase formaterializing various childraising, care, work, healthcare
and education styles"Transformation of Social
Relations"
People's capacities for mutual
help improve, and the culturethat enables various ways ofworking and living becomeswidespread"Transformation of Social Issue
Structures"
Systems changes are promotedin the areas of child-raising, care,work, healthcare and education

Social issues addressed by HATARAKU FUND
HATARAKU FUND designs its Theoryof Change (ToC) and investment
strategy based on its social issues'
structural analysis and impact
investing expertise✔Aging / Declining workforce✔Difficulty of balancing child-raising andThe beneficiaries of the portfolio
companies' products andservices increase

work / Difficulty of balancing care andwork✔Problems related to conventionalJapanese style employment / Need forreforming working practices✔Need for next-generation education

Challenges faced by Japan's financial system✔Need for fund circulation that promotes
businesses that contribute to solving
urgent social and environmental issues✔Need for continuous development of
impact measurement and management(IMM) methods✔Need for promoting impact-driven
finance throughout the financial industry
by sharing knowledge across organizations
and developing frameworks and norms

Create various ways ofworking and living

Human Resources
GP team equipped with bothknowledge and experience instart-up investments and IMM
Information

Super Goals

HATARAKU FUND conducts
impact due diligence and makes
investment decisions through its
established process

The portfolio companies'businesses sustainably grow by
successfully securing growth
capitalThe portfolio companies havemore concrete foundation forsustainably growing while
creating impacts

Impact-driven companies
increase in number due to
growing expectation

Impact-driven companies'
products and services are widelyused in society, contributing toimproved lifestyle andbehavioral change

HATARAKU FUND supports its
portfolio companies bypromoting both their impact
creation and sustainablebusiness growth

IMM perspectives areincorporated into the portfolio
companies' management
decision-making processes

Impact investing's value
becomes recognized for impactdriven companies' impact
creation and sustainablebusiness growth

Increase of successful exit casesthat enable impact-driven
companies to continuously
create impact

Impact creation becomes a partof institutional investors'
decision-making

Access to the latest knowledge
on global-scale impact investing
ecosystem and human network
CapitalVarious impact-driven
institutional investors'participation as HATARAKU
FUND's limited partners

Establish impact investing
ecosystem in Japan
HATARAKU FUND accumulates knowledge
by continuously learning throughinvestment practices and impact
performance reporting. It leads industrylevel discussions and makes policy
recommendations on improving IMM
processes and promoting impact investing

Impact investing frameworks andnorms are developedMore institutional investors
proactively invest in impact
investing funds

The scale and diversity of impact
investing continue to increase

Institutional investors havemore opportunities to realize
capital gains through impact
investingCirculation
HATARAKU FUND contributes to expanding and deepening human, financial, and knowledge capitals
and to develop market infrastructure[HATARAKU FUND Impact Report 2023].
http://hatarakufund.com.testrs.jp/test/wp-content/uploads/2024/04/公開版はたらく FUND インパクトレポート
2023 年度.pdf[Summary of the HATARAKU FUND]
Name： Japan Impact Investment II Limited Partnership(commonly referred to as "HATARAKU FUND")
Date established ： June 2019
General partner ： Japan Impact Investment II LLP(GP)General partner ： Shinsei Impact Investment Limitedpartner
Japan Social Innovation and Investment Foundation
AdvisorMizuho Bank, Ltd.
Fund Period： Investment period of 5 years, fund term of 10 years
Investment： Early to later stage companies operating child-care,
Targetnursing care, and new work-style-related businesses
URL： https://hatarakufund.com/english/

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