Japan’s Mizuho set to acquire Avendus Capital for $700 Mn: Report

Japanese financial major Mizuho Financial Group is reportedly set to acquire KKR-backed Avendus Capital in a deal valuing the Indian investment bank at Rs 6,000 crore ($700 million).

The Economic Times, which first reported the development, said the agreement comes after months of negotiations and will mark Mizuho’s largest investment in India. The deal includes KKR exiting its 60%, along with early investors and co-founder Ranu Vohra. The remaining founders, Kaushal Aggarwal and Gaurav Deepak, will stay on to lead operations, though Mizuho will have veto rights. Mizuho is likely to own up to 70% of Avendus post-deal.

Established in 1999, Avendus operates across investment banking, credit solutions, institutional equities, wealth, and asset management. Its acquisition of Spark in 2022 bolstered its capital markets presence. For the nine months ending December 2024, the firm reported Rs 1,035 crore in revenue and Rs 170 crore in net profit.

KKR, which invested Rs 950-1,000 crore in Avendus in 2015, is expected to make a 3.5x return. Other bidders like Carlyle and Nomura were in contention, but Mizuho emerged the frontrunner due to strategic alignment and cross-border synergy potential.

Recently, SMBC invested in Yes Bank and Mizuho took a 15% stake in Kisetsu Saison Finance. With five branches in India, Mizuho has already infused $500 million into its operations and appointed KKR’s former India head Sanjay Nayar as an advisor.