Mizuho Financial Group Acquires Controlling Stake in Avendus Capital

Avendus Capital, a prominent Indian financial services firm, has entered into a strategic partnership with Mizuho Securities Co Ltd, a subsidiary of Mizuho Financial Group, Inc. This partnership marks a significant shift in Avendus' shareholding structure, as Redpoint Investments Pte Ltd., an affiliate of KKR, will divest its stake to Mizuho. The deal, which values a 78.3% stake at approximately 47 billion rupees (around $516 million), is poised to enhance Avendus' capabilities and expand its international reach.

Entrepreneur MagazineKKR-backed Avendus sale gives Mizuho $516m entry into India investment banking – Private Equity Insights

As part of the agreement, Mizuho will acquire a controlling stake in Avendus, purchasing 61.6% from KKR while seeking approval from other shareholders to increase its ownership. Avendus, founded in 1999 and headquartered in Mumbai, operates across investment banking, wealth management, and asset management sectors. The firm has played a pivotal role in advising on several of India's largest equity offerings and strategic transactions. Mizuho's acquisition is expected to bolster its corporate and investment banking presence in India, a market that has seen a surge in IPO activity due to robust economic growth.

KKR-backed Avendus sale gives Mizuho $516m entry into India investment banking – Private Equity InsightsEntrepreneur Magazine

Despite the changes in ownership, Avendus will maintain its brand identity and continue to be led by its founders, Gaurav Deepak and Kaushal Aggarwal, along with the existing leadership team. Ranu Vohra, Co-founder and Executive Vice Chairman, will also divest his shareholding but will remain in his role until the deal is finalized, pending regulatory approvals. Gaurav Deepak expressed enthusiasm about the partnership, stating, "As we build on the foundation we've laid over the last 26 years, we are delighted to announce a long-term strategic partnership with Mizuho in our next phase of growth."

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Mizuho's acquisition is seen as a strategic move to fill a gap in its investment banking operations in India. Masahiro Kihara, CEO of Mizuho, highlighted the importance of this partnership, noting, "India has been a missing piece and the partnership with Avendus will fill that." The collaboration is expected to leverage Mizuho's global network and institutional relationships, providing Avendus with enhanced resources to support its long-term growth plans.

KKR-backed Avendus sale gives Mizuho $516m entry into India investment banking – Private Equity Insights

While the acquisition is largely viewed positively, some industry analysts have raised concerns regarding the integration of Mizuho's corporate culture with that of Avendus. Critics argue that cultural differences could pose challenges in aligning operational strategies and client service approaches.

KKR-backed Avendus sale gives Mizuho $516m entry into India investment banking – Private Equity Insights

• “Welcoming them as a strategic partner for our M&A platform in APAC, the Americas, and EMEA will enable us to better support our clients with diversified, advanced solutions that make the most of our global client base and finance capabilities.” — Yoshiro Hamamoto, President and CEO of Mizuho Securities

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• “India has been a missing piece and the partnership with Avendus will fill that.” — Masahiro Kihara, CEO of Mizuho Financial Group

KKR-backed Avendus sale gives Mizuho $516m entry into India investment banking – Private Equity Insights

This partnership between Mizuho and Avendus is anticipated to significantly impact the financial landscape in India, enhancing both firms' capabilities in a rapidly evolving market.

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