Latest news with #Avendus
Economic Times
9 hours ago
- Business
- Economic Times
Mizuho to acquire Avendus from KKR at $700 million valuation
iStock The deal will mark the biggest investment by Mizuho in India. Mumbai: Mizuho Financial Group is set to acquire KKR-backed Avendus Capital, valuing the homegrown investment bank at Rs 6,000 crore ($700 million), ending months of protracted negotiations with several twists and turns, said people aware of the matter. Mizuho Group CEO Masahiro Kihara is scheduled to visit the country later this week for official engagements and a formal announcement is due at that time, they said. Kihara is also director of Mizuho Financial Group Inc. Mizuho and KKR, along with the senior leadership of Avendus, agreed on final deal terms in the last few days, even as private equity group Caryle, the only other serious contender in the fray, was circling the deal will mark the biggest investment by Mizuho in India, underscoring the increased strategic interest of Japanese financial groups in the month, SMBC picked up a strategic stake in private sector lender Yes Bank. The transaction will include KKR exiting its entire 60% stake along with some of its earlier, high-net-worth individual investors and Ranu Vohra, as well as small shareholders, including local PE firm Gaja Capital. Vohra is one of the three founders of Avendus. Once completed, the transaction is likely to see the Japanese mega bank owning up to 70% of the investment 2015, KKR paid Rs 950-1,000 crore to pick up a controlling stake in Avendus Capital Pvt Ltd (ACPL) from Eastgate Capital Group Ltd and Americorp Ventures, early investors in Avendus via Singapore-based Red Point Investments Pte Ltd. The firm was founded in 1999 by three friends — Vohra, Kaushal Aggarwal and Gaurav Deepak. Other than Vohra, the other two are likely to remain invested and continue to run the company, retaining full operational control, though Mizuho will have veto of the hottest domestic deal shops in the country, Avendus operates in the financial services space through subsidiaries in financial advisory, capital markets, wholesale financing through Avendus Finance, wealth management and alternative asset management. The acquisition of Spark in 2022 led to the addition of institutional equities to the offerings. Avendus is present in 10 cities in India, the US and Singapore. A little over half of its profits before tax in the first nine months of 2025 came from the investment banking division, followed by credit solutions and institutional equities. ACPL posted a total consolidated income of Rs 1,035 crore and net profit of Rs 170 crore for the nine months to December 2024, against Rs 1,012 crore and Rs 118 crore, respectively, in exit, KKR is expected to make a blended 3.5x return in rupee terms over a nine-year and Avendus declined to comment. Mizuho India country co-head Piyush Aggarwal did not respond to ET's the past year, several PE funds and family offices had evinced interest in acquiring the business, including TPG Capital, TA Associates and Azim Premji family office PremjiInvest. Even Nomura, originally chosen to manage the stake sale process, threw its hat in the ring but eventually only Mizuho and Carlyle were left to compete. The mandate subsequently moved to Rothschild. 'There is a small difference in the valuation between the two but Mizuho brings a far larger strategic play and adds heft in cross-border transactions,' said an executive in the several investors, the inherent cyclicality associated with the investment banking business was a challenge. The acquisition of Spark has supported profitability through its equity capital market (ECM) products.'While the group reported strong performance in investment banking in fiscals 2022 and 2023, it was impacted in fiscal 2024 with extended deal completion timelines,' said a March Crisil credit report. 'There was some revival in fiscal 2025 with the nine-month revenue from IB (investment banking) surpassing the full fiscal 2024 revenue… The ongoing diversification in business should support profitability over the medium term.'One of Japan's largest financial institutions, Mizuho bought boutique investment bank Greenhill & Co in a $550 million deal in 2023, betting that the struggling group could help kickstart its ambitions in the US. The third-largest Japanese lender said it aims to sell 'strategic' shareholdings — stocks held to cement ties with corporate clients — worth at least ¥350 billion over the next three years through March 2028 amid the slump in long-dated Japanese Bank, the banking subsidiary of Mizuho Financial Group Inc, has had a presence in India for over 25 years, with five branches catering primarily to corporate clients. It has been looking to ramp up its local presence and hired private equity veteran and former India head of KKR Sanjay Nayar as external senior advisor to Mizuho Bank India. The parent has infused about $500 million (Rs 4,100 crore) into its India bank branches. Last year, Mizuho invested $145 million for a 15% stake in credit card issuer Credit Saison's Indian subsidiary Kisetsu Saison Finance (India).
Time of India
10 hours ago
- Business
- Time of India
Mizuho to acquire Avendus from KKR at $700 million valuation
Mumbai: Mizuho Financial Group is set to acquire KKR-backed Avendus Capital , valuing the homegrown investment bank at Rs 6,000 crore ($700 million), ending months of protracted negotiations with several twists and turns, said people aware of the matter. Mizuho Group CEO Masahiro Kihara is scheduled to visit the country later this week for official engagements and a formal announcement is due at that time, they said. Kihara is also director of Mizuho Financial Group Inc. Mizuho and KKR , along with the senior leadership of Avendus, agreed on final deal terms in the last few days, even as private equity group Caryle, the only other serious contender in the fray, was circling the prospect. The deal will mark the biggest investment by Mizuho in India, underscoring the increased strategic interest of Japanese financial groups in the country. Last month, SMBC picked up a strategic stake in private sector lender Yes Bank. The transaction will include KKR exiting its entire 60% stake along with some of its earlier, high-net-worth individual investors and Ranu Vohra, as well as small shareholders, including local PE firm Gaja Capital. Vohra is one of the three founders of Avendus. Once completed, the transaction is likely to see the Japanese mega bank owning up to 70% of the investment bank. In 2015, KKR paid Rs 950-1,000 crore to pick up a controlling stake in Avendus Capital Pvt Ltd (ACPL) from Eastgate Capital Group Ltd and Americorp Ventures, early investors in Avendus via Singapore-based Red Point Investments Pte Ltd. The firm was founded in 1999 by three friends — Vohra, Kaushal Aggarwal and Gaurav Deepak. Other than Vohra, the other two are likely to remain invested and continue to run the company, retaining full operational control, though Mizuho will have veto rights. One of the hottest domestic deal shops in the country, Avendus operates in the financial services space through subsidiaries in financial advisory, capital markets, wholesale financing through Avendus Finance, wealth management and alternative asset management. The acquisition of Spark in 2022 led to the addition of institutional equities to the offerings. Avendus is present in 10 cities in India, the US and Singapore. A little over half of its profits before tax in the first nine months of 2025 came from the investment banking division, followed by credit solutions and institutional equities. ACPL posted a total consolidated income of Rs 1,035 crore and net profit of Rs 170 crore for the nine months to December 2024, against Rs 1,012 crore and Rs 118 crore, respectively, in FY24. Upon exit, KKR is expected to make a blended 3.5x return in rupee terms over a nine-year period. KKR and Avendus declined to comment. Mizuho India country co-head Piyush Aggarwal did not respond to ET's queries. In the past year, several PE funds and family offices had evinced interest in acquiring the business, including TPG Capital, TA Associates and Azim Premji family office PremjiInvest. Even Nomura, originally chosen to manage the stake sale process, threw its hat in the ring but eventually only Mizuho and Carlyle were left to compete. The mandate subsequently moved to Rothschild . 'There is a small difference in the valuation between the two but Mizuho brings a far larger strategic play and adds heft in cross-border transactions,' said an executive in the know. For several investors, the inherent cyclicality associated with the investment banking business was a challenge. The acquisition of Spark has supported profitability through its equity capital market (ECM) products. 'While the group reported strong performance in investment banking in fiscals 2022 and 2023, it was impacted in fiscal 2024 with extended deal completion timelines,' said a March Crisil credit report. 'There was some revival in fiscal 2025 with the nine-month revenue from IB (investment banking) surpassing the full fiscal 2024 revenue… The ongoing diversification in business should support profitability over the medium term.' One of Japan's largest financial institutions, Mizuho bought boutique investment bank Greenhill & Co in a $550 million deal in 2023, betting that the struggling group could help kickstart its ambitions in the US. The third-largest Japanese lender said it aims to sell 'strategic' shareholdings — stocks held to cement ties with corporate clients — worth at least ¥350 billion over the next three years through March 2028 amid the slump in long-dated Japanese bonds. Mizuho Bank, the banking subsidiary of Mizuho Financial Group Inc, has had a presence in India for over 25 years, with five branches catering primarily to corporate clients. It has been looking to ramp up its local presence and hired private equity veteran and former India head of KKR Sanjay Nayar as external senior advisor to Mizuho Bank India. The parent has infused about $500 million (Rs 4,100 crore) into its India bank branches. Last year, Mizuho invested $145 million for a 15% stake in credit card issuer Credit Saison's Indian subsidiary Kisetsu Saison Finance (India).
Entrepreneur
09-05-2025
- Business
- Entrepreneur
Avendus Secures Over INR 1,000 Cr in First Close of Structured Credit Fund III
ASCF III will target a diversified portfolio of 12 to 18 investments, with individual ticket sizes ranging between INR 200 crore and INR 500 crore. You're reading Entrepreneur India, an international franchise of Entrepreneur Media. Avendus has achieved the first close of its Structured Credit Fund III (ASCF III), garnering investor commitments exceeding INR 1,000 crore since its launch in January 2025. The fund, registered with SEBI as a Category-II Alternative Investment Fund (AIF), aims to raise INR 2,000 crore, with an additional green shoe option of INR 2,000 crore. ASCF III will target a diversified portfolio of 12 to 18 investments, with individual ticket sizes ranging between INR 200 crore and INR 500 crore. The fund seeks to deliver gross internal rates of return (IRRs) between 16% and 18%. "The fund has already drawn 15% of the capital and completed its first investment," said Anshul Jain, Executive Director at Avendus Structured Credit Fund, highlighting early momentum in deal execution. Continuing its focus on high-yield private credit, ASCF III will invest primarily in secured debt of operating and holding companies, with selective exposure to hybrid instruments. The fund is sector-agnostic but will leverage Avendus' deep corporate relationships and domain knowledge in industries such as pharmaceuticals, healthcare, manufacturing, consumer, chemicals, technology, and B2B services. "The private credit space in India is evolving rapidly, driven by growing demand from mid-to-large companies and promoters seeking bespoke capital solutions," said Nilesh Dhedhi, Managing Director at Avendus Finance. "With traditional lenders constrained by a standardized lending approach coupled with volatility in other capital market sources, we see a rising preference for flexible capital that can help scale the ambitions of Indian companies and entrepreneurs." Early investors include a mix of returning participants and new backers, notably high-net-worth individuals and family offices. Avendus has seen strong performance in its previous credit funds. ASCF I, launched in 2017, was fully returned by 2022 with a gross IRR of 18%. ASCF II, launched in January 2022, is currently tracking an expected gross IRR of 17%. "As one of the earliest and most active private credit platforms in the country, Avendus has emerged as a trusted name in the high-yield performing credit segment," said Kaushal Aggarwal, Co-founder of Avendus. Founded in 1999, Avendus operates across investment banking, institutional equities, wealth management, credit solutions, and asset management, with a presence in 10 cities globally.
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Business Standard
08-05-2025
- Business
- Business Standard
Avendus raises Rs 1,000 cr in first close of third structured credit fund
Avendus has raised more than Rs 1,000 crore in the first close of its third structured credit fund, as demand from high-net-worth individuals (HNIs) and family offices for customised private debt solutions grows in India's evolving credit market. The Mumbai-based financial services firm launched Avendus Structured Credit Fund III (ASCF III) earlier this year and has already drawn 15 per cent of the capital, said Anshul Jain, Executive Director, Avendus Structured Credit Fund. The fund aims to raise Rs 2,000 crore with a green shoe option for an additional Rs 2,000 crore, targeting gross portfolio internal rates of return (IRRs) between 16 per cent and 18 per cent, according to a company press statement. 'With traditional lenders constrained by a standardised lending approach, coupled with volatility in other capital market sources, we see a rising preference for flexible capital that can help scale the ambitions of Indian companies and entrepreneurs,' said Nilesh Dhedhi, Managing Director, Avendus Finance. The fund focuses on tailored private credit solutions, primarily through secured debt investments in both operating and holding companies, with selective exposure to hybrid instruments, the company said. Over the past eight years, Avendus has executed more than Rs 10,000 crore in private credit deals and built a portfolio spanning over 100 transactions. Its platform focuses on companies in pharmaceuticals, manufacturing, healthcare, B2B services, consumer, and technology sectors. ASCF III follows the group's earlier structured credit funds. The first fund, launched in 2017, was fully exited by mid-2022 with a gross portfolio IRR of 18 per cent. The second fund, fully deployed across 14 transactions, is tracking an expected gross IRR of around 17 per cent. 'Achieving commitments of over Rs 1,000 crore, equivalent to our previous fund size, within a short period is a clear testimony to the continuing trust investors have placed in the strategy, team, and strength of the Avendus ecosystem,' said Jain. The third fund is expected to build a portfolio of 12 to 18 investments, with ticket sizes ranging from Rs 200 crore to Rs 500 crore, through a mix of secured loans and select hybrid instruments.
Time of India
24-04-2025
- Business
- Time of India
Secondaries specialist PixelSky Capital launches Rs 400 crore late-stage fund
PixelSky Capital , a secondaries fund founded by Bengaluru-based investment bank IndigoEdge and entrepreneur Hitesh Ahuja, has launched its first investment vehicle with a target corpus of Rs 400 crore to back late-stage tech and consumer companies, people in the know said. Ahuja had sold his foodtech startup Yumlane to Curefoods in 2023. The fund has already backed beauty retailer Purplle, and is likely to close its second investment by June, one of the people said. 'The firm will back eight companies that are planning to go public in a 36-48-month horizon with average cheque sizes of Rs 40-50 crore.' PixelSky's founders have together invested Rs 10-15 crore in the fund, which is also raising capital from domestic family offices and unicorn founders, he said, adding that the fund is expected to be closed by March 2026. IndigoEdge joins a list of investment banks focused on new-economy deals starting their own funds. India's largest tech investment bank, Avendus, runs Future Leaders Fund, a late-stage investment vehicle that has backed the likes of Lenskart, Licious, Juspay and FirstCry. Avendus announced the first close of its third Future Leaders Fund at Rs 850 crore in January. It plans to raise Rs 3,000 crore for this fund. Live Events Others including Dexter Capital and Merisis Advisors have also launched their investment vehicles. Discover the stories of your interest Blockchain 5 Stories Cyber-safety 7 Stories Fintech 9 Stories E-comm 9 Stories ML 8 Stories Edtech 6 Stories 'IndigoEdge has been making proprietary investments from its balance sheets and has been a limited partner in 8-10 venture capital funds, having invested Rs 25-30 crore so far. With PixelSky, IndigoEdge aims to have product offerings in addition to services that it provides, having facilitated over 150 transactions worth around $3 billion,' the person said. 'Going ahead, IndigoEdge could launch more such funds, and even look at a wealth management play. However, these plans haven't been finalised yet,' he added. IndigoEdge declined to comment. Along with Ahuja, who is a former senior executive at private equity firm New Silk Route, IndigoEdge cofounder Zerin Rahiman will be leading the fund. Stocking up the dry powder IndigoEdge's plan to double down on investments in new-age companies comes at a time when the venture capital industry has been raising large funds. On Tuesday, A91 Partners announced closure of its largest ever fund with a $665 million corpus . Flipkart and Swiggy-backer Accel closed a $650 million vehicle in January. Over the last one year, there has been increased activity at funds focused specifically on secondary transactions, where they purchase shares from existing investors. Former Peak XV Partners managing director Piyush Gupta launched Kenro Capital in November, while Gurugram-based Oister Global teamed up with Silicon Valley investor Tribe Capital to launch a $500-million secondaries-focused fund in September. 'In India there's an immediate opportunity of $20 billion for secondary deals, where early investors, angels and Esops (employee stock option programmes) would be looking for liquidity…PixelSky Capital is evaluating around 20 companies across various tech and consumer sectors through which it will finalise eight investments,' the person cited above said.
