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).
- Mizuho Financial Group to acquire KKR-backed Avendus Capital in a $700 million deal, marking its biggest India investment.
- KKR exits Avendus with a 3.5x return, while Mizuho strengthens India presence with 70 percent ownership stake.
- Avendus Capital’s Rs. 1,035 Crore revenue and cross-border synergies attract Mizuho’s strategic acquisition.
The agreement comes after months of negotiations and will mark Mizuho’s largest move in the financial services M&A landscape. 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 percent of Avendus post-deal.
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Established in 1999, Avendus Capital 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 percent 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.
