Japan's Mizuho Securities to Acquire Majority Stake in Avendus Capital

KKR-backed Redpoint Investments will sell its stake in Avendus Capital, an Indian institutional financial services firm, to Japan’s Mizuho Securities, a unit of Mizuho Financial Group. Avendus co-founder and executive vice chairman Ranu Vohra will also divest his stake but will remain in his role until the transaction is completed.

Mizuho Securities said it will acquire between 61.6% and 78.3% of Avendus, making the firm a consolidated subsidiary. The deal will integrate Avendus into Mizuho's global network while allowing KKR to exit.

Point to note: KKR has been a major investor in Avendus Capital, first acquiring a majority stake in the Indian financial services firm between 2015 and 2016 and supporting its growth. Now, KKR is selling its stake to Japan’s Mizuho Financial Group, which will bring Avendus into its global network, while KKR exits with substantial returns.

Although the official valuation has not been disclosed, an earlier report by The Economic Times said that Mizuho Financial Group was finalising terms to acquire KKR-backed Avendus Capital at a ₹5,900-crore valuation, almost six months after it had first agreed to buy the home-grown investment bank.

This acquisition is part of a broader trend of Japanese financial institutions increasing their presence in India, attracted by the country’s fast-growing economy.

Earlier, Bloomberg reported that Japan’s Mitsubishi UFJ Financial Group (MUFG) is in advanced talks to acquire a 20% stake in Shriram Finance, potentially valued at over 500 billion yen ($3.22 billion), while Sumitomo Mitsui Financial Group purchased a 24.2% stake in Yes Bank earlier this year.

Avendus will continue to be led by its founders, Gaurav Deepak and Kaushal Aggarwal, along with the senior management team. The firm will retain its brand and identity while benefiting from Mizuho’s global reach, institutional network, and scale.

Mizuho Financial Group is one of the world’s largest full-service financial institutions, serving over 20 million retail clients and approximately 80% of listed companies in Japan. Globally, Mizuho operates more than 100 offices, offering corporate and investment banking services.