Japanese Bank Eyes India's PE Industry

28 Nov 2024 , 01:47 PM

In an effort to reach some of the most active dealmakers in India, Mizuho Financial Group Inc. is thinking about expanding into a new market for the lender by concentrating on venture capital and private equity firms.

According to news reports, Japan’s third-largest bank has discussed pursuing this market sector internally and is assembling a pool of possible personnel to spearhead this effort. According to the reports, the bank hopes to start the initiative as early as next year.

The bank’s strategy to target “financial sponsors,” or companies that make investments in private companies, is similar to that of both local lenders like Kotak Mahindra Bank Ltd. and Axis Bank Ltd. and international banks like JPMorgan Chase & Co. and Deutsche Bank AG.

Building connections with financial sponsors can allow banks to provide a range of services for both personal and commercial requirements. This could involve managing wealth when dealmakers find gold, advising on follow-on acquisitions or share sales, and setting up loan capital for the businesses in their portfolio.

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