Marathon Capital Partners Completes Second Close for Fund II Targeting SME Succession and Management Challenges

Marathon Fund II Reaches Milestone Completion

Marathon Capital Partners, headquartered in Chiyoda, Tokyo, has recently announced the successful closing of its second phase for the Marathon Fund II. As of May 31, 2025, the fund garnered more subscriptions than its targeted fundraising amount, ultimately achieving ¥33.66 billion in capital from external investors, surpassing the original goal of ¥32.5 billion. This significant step reflects the robust interest from investors in supporting small- and micro-cap enterprises in Japan.

In addition to raising funds, Marathon Capital has also received commitments for additional investments, and plans to conduct a final close by the end of the fiscal year at approximately ¥35 billion. Following this second closing, the fundraising efforts from external contributors will officially conclude.

Among the investors who pledged their support during this round are renowned entities such as A.I. Capital, the Shizuoka Bank, Nagoya Bank, and Fukui Bank. These partnerships signify a collaborative approach to enhancing the capital framework for businesses facing formidable challenges in today’s market.

Addressing Current Challenges for SMEs

Marathon Fund II is committed to addressing various pressing issues that small and medium enterprises (SMEs) in Japan face, particularly in light of the 2025 succession crisis, the scarcity of workforce resources, and the lingering aftermath of the COVID-19 pandemic. The fund specifically targets small-cap companies—characterized as having an EBITDA between ¥100 million to ¥500 million—and micro-cap firms with an EBITDA of under ¥100 million.

The portfolio management team at Marathon Capital boasts extensive experience, having executed over 90 successful investments into small-cap and micro-cap ventures. Their expertise is critical in implementing succession strategies to bolster the operational foundations of target companies and enhance their overall value. By leveraging a wealth of knowledge in business succession and operational optimization, the team aims to reverse the trend of declining business solvency and ensure longevity for participating SMEs.

The pressing 2025 problem—the impending wave of retirements among business owners in Japan—is pushing the need for effective solutions forward. Many small businesses are struggling not only with leadership transitions but also with operational viability. Marathon Capital’s mission is to stabilize these companies by physically and financially supporting their transitions.

Aspects like teamwork in governance, succession planning, and financial health assessment are crucial to the approach taken by Marathon Capital. It engages with its portfolio companies in a nuanced manner, providing tailored support that addresses individual business challenges.

About Marathon Capital Partners

Founded in April 2021, Marathon Capital Partners operates from Marunouchi, Tokyo. Under the leadership of President Toshinori Ono, the firm specializes in the formation, management, and operation of private equity funds, aiming to drive value in the small and micro-cap segment.
Their strategic focus on nurturing SMEs not only contributes to corporate growth but also enhances the broader economic landscape in Japan, creating a more sustainable and resilient business environment. Marathon Capital Partners remains committed to fostering the potential of Japanese SMEs, ensuring they navigate through challenges successfully.

For additional information regarding Marathon Capital Partners and updates on Marathon Fund II, please visit Marathon Capital.