Japan's Mizuho hunting for deals to bolster asset management business

Sumitomo Mitsui Trust

17/01/2024 15:00

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      Wants to double assets under management to $1 trln in 10
years
    

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      Considering partnerships, investments,
acquisitions-executive
    

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      Rival Japanese banks also seeking asset management M&A
    

  
    By Makiko Yamazaki and Ritsuko Shimizu
       TOKYO, Jan 18 (Reuters) - Mizuho Financial Group
 8411.T  is in talks with overseas asset managers about deals as
the major Japanese banking group looks to more than double its
assets under management to $1 trillion within 10 years, a senior
executive told Reuters.
    Mizuho, which has about 70 trillion yen ($474.71 billion) in
assets under management, aims to join "the trillion-dollar club"
within a decade, said Noriyuki Sato, the head of its asset
management business, in an interview.
        "That's the threshold to be able to compete globally,
not just in terms of volume but also quality," he said.
    The target includes private assets, which Mizuho hopes to
boost from about 4 trillion yen to around 20 trillion yen.
    Mizuho is the latest top Japanese bank to announce plans to
beef up its asset management businesses through mergers and
acquisitions, with the firms expecting an end to Japan's
decades-long deflation will spark a shift of dormant household
savings into investments.
    "We've been in full-fledged discussions with multiple
overseas asset managers," Sato said. 
    Deals could take the form of partnerships, investments or
acquisitions, Sato said, adding that alternative asset classes
such as private debt, private equity and infrastructure, as well
as global stocks, are areas of focus for growth.
    "We'd like to shift into high gear in alternative
investments," he said. 
    Japan is just beginning to see a shift into alternative
assets, something that the United States saw years ago, said
Sato, who joined Mizuho from Singapore's PhillipCapital Group
last April.
    Mizuho's rivals have been active in dealmaking, with
Mitsubishi UFJ Financial Group  8306.T  buying London-based
private credit firm AlbaCore Capital last year.
    Sumitomo Mitsui Trust Holdings'  8309.T  Nikko Asset
Management last month entered into advanced discussions to buy a
stake in French private debt firm Tikehau Capital  TKOO.PA .
    ($1 = 147.4600 yen)

 (Reporting by Makiko Yamazaki and Ritsuko Shimizu; Editing by
Jamie Freed)
 ((Makiko.Yamazaki@thomsonreuters.com; +81-3-4563-2805;))