Page 46 Bain Capital Healthcare
P. 46
HEALTHCARE SERVICES
Transforming a Japanese
healthcare leader
Rapid demographic and structural changes in Japan’s healthcare
sector, led Nichii Gakkan to embrace its core businesses
strengths and set the foundation for renewed growth.
Amid market shifts and following the passing of its
founder and chairman, the company was at a pivotal
juncture. To accelerate transformation and refocus on its
core strengths, Nichii Gakkan executed a management
buyout (MBO) in partnership with Bain Capital.
We supported the company’s transition from a traditional,
founder-led structure to a collaborative management sys-
tem, working closely with President Mori and his team to ex-
ecute a “back-to-core” strategy centered on the company’s
core segments: elderly care, medical BPO, and childcare.
The demographic and market context was compelling.
Japan’s aging population and the growing demand for
healthcare and childcare services created opportunities
for well-capitalized and operationally strong providers
to scale. Nichii Gakkan already held leading market
positions across these fragmented industries, providing a
solid foundation for consolidation and innovation.
Throughout the partnership, we worked hand-in-
hand with management to strengthen operational
infrastructure, enhance management systems, and
support transformation initiatives on the ground.
Together, they rebuilt Nichii’s customer relationship
management (CRM) system for its elderly care
business, creating a win–win model that improved both
service quality and customer lifetime value. We also
helped establish a dedicated M&A team—previously
nonexistent—which completed seven acquisitions
within three years, expanding Nichii Gakkan’s reach and
accelerating growth.
At the same time, the company divested non-core
operations, including its language education business,
significantly improving profitability. These strategic
actions resulted in Nichii Gakkan’s EBITDA roughly
doubling during Bain Capital’s ownership, representing a
27% compound annual growth rate (CAGR).
In 2023, we sold Nichii Gakkan to Nippon Life Insurance
Company, Japan’s largest life insurer. The partnership
positioned Nichii Gakkan as a more focused, efficient,
and future-ready healthcare services leader. Together,
Nichii and Nippon Life now aim to leverage their
respective customer bases to further expand access to
high-quality care and support Japan’s evolving social
infrastructure.
Quick Facts
OVERVIEW
Japanese provider of healthcare, elderly
care, and childcare services supporting
an aging and evolving society
HQ
Tokyo, Japan
INVESTMENT
2020
INVESTORS
Private Equity
WEBSITE
nichiigakkan.co.jp
46
Transforming a Japanese
healthcare leader
Rapid demographic and structural changes in Japan’s healthcare
sector, led Nichii Gakkan to embrace its core businesses
strengths and set the foundation for renewed growth.
Amid market shifts and following the passing of its
founder and chairman, the company was at a pivotal
juncture. To accelerate transformation and refocus on its
core strengths, Nichii Gakkan executed a management
buyout (MBO) in partnership with Bain Capital.
We supported the company’s transition from a traditional,
founder-led structure to a collaborative management sys-
tem, working closely with President Mori and his team to ex-
ecute a “back-to-core” strategy centered on the company’s
core segments: elderly care, medical BPO, and childcare.
The demographic and market context was compelling.
Japan’s aging population and the growing demand for
healthcare and childcare services created opportunities
for well-capitalized and operationally strong providers
to scale. Nichii Gakkan already held leading market
positions across these fragmented industries, providing a
solid foundation for consolidation and innovation.
Throughout the partnership, we worked hand-in-
hand with management to strengthen operational
infrastructure, enhance management systems, and
support transformation initiatives on the ground.
Together, they rebuilt Nichii’s customer relationship
management (CRM) system for its elderly care
business, creating a win–win model that improved both
service quality and customer lifetime value. We also
helped establish a dedicated M&A team—previously
nonexistent—which completed seven acquisitions
within three years, expanding Nichii Gakkan’s reach and
accelerating growth.
At the same time, the company divested non-core
operations, including its language education business,
significantly improving profitability. These strategic
actions resulted in Nichii Gakkan’s EBITDA roughly
doubling during Bain Capital’s ownership, representing a
27% compound annual growth rate (CAGR).
In 2023, we sold Nichii Gakkan to Nippon Life Insurance
Company, Japan’s largest life insurer. The partnership
positioned Nichii Gakkan as a more focused, efficient,
and future-ready healthcare services leader. Together,
Nichii and Nippon Life now aim to leverage their
respective customer bases to further expand access to
high-quality care and support Japan’s evolving social
infrastructure.
Quick Facts
OVERVIEW
Japanese provider of healthcare, elderly
care, and childcare services supporting
an aging and evolving society
HQ
Tokyo, Japan
INVESTMENT
2020
INVESTORS
Private Equity
WEBSITE
nichiigakkan.co.jp
46
