Japan's Mizuho Group to acquire over 60% stake in Avendus Capital from KKR

Mizuho Financial Group will buy a controlling stake in Avendus Capital via its securities arm, marking its latest push to expand investment banking and corporate finance operations in India

Japan’s Mizuho Financial Group on Wednesday said it will acquire a controlling over 60 per cent stake in Avendus Capital through its subsidiary Mizuho Securities, by buying out the stake held by US-based private equity firm KKR via Redpoint Investments in the investment bank, subject to regulatory approvals. After completion of the acquisition, Avendus will become a consolidated subsidiary of Mizuho Securities.

 

This marks Mizuho’s latest push to expand its investment banking and corporate finance footprint in India, one of its key growth markets globally.

 

While financial details of the deal were not disclosed, reports said the Japanese lender will acquire 61.6 per cent stake and is seeking approval from other holders to increase that to 78.3 per cent for a total purchase price of ₹4,700 crore ($516 million).

 

 

As part of the transaction, Avendus Cofounder and Executive Vice Chairman Ranu Vohra will also divest his shareholding. Vohra will continue in his current role until the deal is completed, subject to statutory and regulatory approvals.

 

Post-transaction, Avendus will continue to be led by founders Gaurav Deepak and Kaushal Aggarwal along with the existing leadership team. The firm said it will retain its brand and identity while gaining access to Mizuho’s global scale, institutional network, and cross-border capabilities.

 

“With them (Avendus), we aim to evolve into a truly global financial institution that creates new value by bridging diverse cultures beyond national and regional boundaries,” said Masahiro Kihara, president & group chief executive officer (CEO), Mizuho Financial Group.

 

Mizuho is the latest Japanese financial conglomerate to enter the Indian financial services space, after Sumitomo Mitsui Financial Group through Sumitomo Mitsui Banking Corporation (SMBC) acquired over 24 per cent stake in Indian private sector lender Yes Bank. Recent reports have suggested that another Japanese financial group MUFG is now looking to buy stake in Shriram Finance, one of the largest non-banking financial companies (NBFCs) in the country.

 

“Avendus has a presence that is second to none. Welcoming them as a strategic partner for our mergers and acquisitions (M&A) platform in Asia Pacific (Apac), the Americas, and EMEA (Europe, the Middle East, and Africa) will enable us to better support our clients with diversified, advanced solutions that make the most of our global client base and finance capabilities. We will collaborate closely with Avendus’ leadership, and together our two organisations will deliver even greater benefits for clients,” said Yoshiro Hamamot, president & CEO, Mizuho Securities.

 

Mizuho Financial Group is one of Japan’s largest banking groups with around $2 trillion in assets. Founded in 1999, Avendus operates across investment banking, wealth management, institutional equities, and alternative assets, with a presence in India, the US, and Singapore.

 

According to Mizuho, investing in Avendus will further strengthen its business foundation in India’s rapidly developing and maturing capital markets. Mizuho’s clients have shown significant interest in expanding into the Indian market, and this collaboration will enable Mizuho to provide robust support in this regard right from the conceptual stage.

 

By combining its global expertise with Avendus’ deep knowledge of the market, Mizuho will continue to innovate together with clients as a trusted partner in their corporate business strategies, the company said.

 

“Mizuho mirrors our values, vision and ambition as we enter the next phase of growth,” said Deepak. He added that the partnership would help deliver innovative capital solutions and deepen financial flows between India and Japan. Deepak also thanked KKR for its “decade-long partnership” and acknowledged Vohra’s role in building Avendus.

 

Aggarwal said the transaction was “about more than capital”, and would strengthen the firm’s execution capabilities and client offering at a time when India is entering a transformative economic phase.

 

Vohra, who is stepping away after 26 years at the firm, said Avendus had evolved from an idea into a “trusted institution that stands for integrity and excellence”, adding that he was confident about its future potential.