Japan’s Mizuho Financial Group To Acquire 60% Stake In Avendus Capital

Japan’s Mizuho Securities is acquiring a majority stake of about 60% in Avendus Capital from US-based investment firm KKR with an eye on expanding its financial offerings in the Indian capital market.

Redpoint Investments Pte Ltd, an affiliate of KKR, will sell its stake in the firm to Mizuho Securities Co Ltd, a subsidiary of Mizuho Financial Group, Avendus said in a statement. 

Additionally, Avendus cofounder and executive vice chairman Ranu Vohra will also divest his shareholding. He will continue to serve his role until the deal is completed.

Post the deal, Avendus Capital will become a subsidiary of Mizuho Securities, while retaining its brand and identity.

A Reuters report said that Mizuho will buy the stake in Avendus for $523 Mn (about INR 4,720 Cr). 

Founded in 1999 by Gaurav Deepak, Kaushal Aggarwal, and Vohra, Avendus started as a boutique investment bank focused primarily on M&As and private equity syndication services. Over the years, it grew into a financial services firm offering asset management, credit solutions, investment banking, institutional equities, and wealth management solutions. 

In 2015, KKR acquired around 70% stake in Avendus for about $105 Mn.

Mumbai-based Avendus works closely with Indian startups and entrepreneurs, providing customised financial service solutions. It has also backed numerous startups via its flagship private equity platform Avendus Future Leaders Fund (FLF).

The fund targets companies with strong competitive moats, proven execution, and proximity to liquidity events like IPOs and stake sales, leveraging Avendus’ extensive network, deal flow, and industry insights.

Avendus launched its third private credit fund with a target corpus of up to $350 Mn in May 2024, and its Future Leaders Fund III (FLF III) marked its first close, securing INR 850 Cr in commitments from leading domestic family offices and Indian institutions, in January this year.

The fund plans to make 12-14 investments, with an average ticket size of INR 150 Cr to INR 300 Cr across sectors such as financial services, healthcare, technology, consumer goods, and manufacturing.

Avendus claims to have assets worth INR 1,850 Cr under its management via its previous two Future Leaders Fund, which count Lenskart, Delhivery, VerSe Innovation (Dailyhunt), Licious, Juspay, Zeta and FirstCry in their portfolio. 

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