Japan-Based Mizuho to Acquire Majority Stake in Avendus Capital from KKR for Up to ¥81 Billion

Japan-based Mizuho Financial Group is set to acquire a controlling stake in Indian financial services firm Avendus Capital from the private equity major KKR for up to ¥81 billion, as per news reports. 

The proposed acquisition highlights Japan’s expanding financial interests in India’s banking and investment sector. 

Mizuho’s Stake Acquisition in Avendus 

Mizuho Securities will purchase between 61.6% and 78.3% of Avendus’s shares, thereby making it a consolidated subsidiary. The move marks an effort by the Japanese financial institution to expand its presence in India’s growing market and bolster cross-regional collaboration.  

Mizuho’s Chief Executive Officer Masahiro Kihara stated that this acquisition fills a key gap in its investment banking operations, especially following its 2023 acquisition of US-based M&A advisory firm Greenhill. 

Strategic Move Strengthens Regional Integration 

Kihara mentioned that the acquisition complements Mizuho's objective to serve rising enquiries from banking clients interested in India.  

Avendus is known for its expertise in investment banking, wealth management, and asset management. With this acquisition, Mizuho aims to utilise Avendus’s local know-how and client base to drive integration with its global advisory network. 

Read More: Japan Manufacturing Contraction Eases as Services Slow in December! 

Impact on Avendus and Expansion Plans 

Avendus Co-founder and CEO Gaurav Deepak confirmed that the deal will support the company in its expansion efforts, including increased hiring across sectors such as industrials, healthcare, infrastructure, and energy. The partnership also aims to increase capital investments in India’s rapidly diversifying economy. 

Previous Investment Background 

KKR first invested in Avendus in 2016 and played a significant role in its institutional expansion. The current transaction indicates a transition towards deeper integration of Japanese capital into Indian financial services.  

This move comes in line with increased Japanese activity in the Indian market, with Sumitomo Mitsui Financial Group purchasing a 24.2% stake in Yes Bank earlier this year. 

Conclusion 

Mizuho’s decision to acquire a significant majority in Avendus marks a noteworthy expansion of Japanese financial presence in India. The acquisition aligns with Mizuho’s recent strategic initiatives and supports Avendus’s ongoing business growth across core sectors. 

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