Japanese banking giant Mizuho and MUFG plan to expand their footprint in the global investment market through acquisitions and partnerships with overseas money managers, reported Reuters.
The move is aimed at capturing a larger slice of the global investing market, with a particular focus on private assets in Europe and the US.
Mizuho has expressed a keen interest in establishing a presence in investment domains such as credit market and infrastructure financing.
An executive from Mizuho shared with Reuters the bank’s ambition to secure a partnership with a private asset specialist in either Europe or the US.
MUFG also revealed plans to seek out opportunities in the overseas asset management sector, pinpointing the US and Europe as key regions for potential deals.
Between them, Mizuho and MUFG manage assets totalling approximately $1.3tn, primarily serving a domestic clientele through their asset management divisions.
These divisions offer a range of investment products, including both passive and actively managed funds.
However, their international operations are currently limited, with a primary focus on distributing Japanese equities funds.
Mizuho’s investments arm AM One London-based head of global distribution strategy Oleg Kapinos said:
“We definitely are keeping an eye on any potential opportunities… It might be a partnership, it might be an acquisition, nothing is decided as of this point.
“The buying opportunities are fairly rare and when there is an attractive asset it is likely to attract a lot of attention.”
AM One manages about $489bn.
MUFG Asset Management (MUFG AM) is exploring “attractive non-organic growth opportunities” to augment its existing business.
According to the company, only a fifth of its 120.7tn yen ($818bn) in assets under management originate from outside Japan.
MUFG AM head of client relations for London Duncan Gardiner, highlighted the company’s significant growth in the city, which serves as its main international hub outside Japan.
The London office has seen a more than 50% increase in staff numbers to 39 in just over two years.
Gardiner emphasised the strategic importance of Europe as a launchpad for the company’s global ambitions, while also pointing to growth opportunities through a distribution arrangement with US bank Morgan Stanley, in which MUFG holds a substantial 23.6% stake.
He said: “As we look to become a more global business, Europe is a very important starting point for us.”
Both Mizuho and MUFG have refrained from commenting on whether discussions with potential target companies have commenced, and there is no guarantee that any transactions will materialise.
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