Japan's Mizuho seeks deals to boost asset management business By Reuters

By Makiko Yamazaki and Ritsuko Shimizu

TOKYO (Reuters) – Mizuho Financial Group is in talks with foreign asset managers about deals, as Japan's top banking group seeks to 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, Noriyuki Sato, head of its securities business, said in an interview. asset Management.

“That is the threshold to be able to compete globally, not only in terms of volume but also quality,” he said.

The target includes private assets, which Mizuho hopes to increase from about 4 trillion yen to about 20 trillion yen.

Mizuho is the latest major Japanese bank to announce plans to bolster its asset management businesses through mergers and acquisitions, with companies hoping the end of Japan's decades-long deflation will spark a shift in households' latent savings towards investments.

“We have been in extensive discussions with multiple foreign 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 equities, are focus areas for growth.

“We would like to accelerate alternative investments,” he said.

Japan is just beginning to see a shift toward alternative assets, something 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 the deal, with Mitsubishi UFJ (NYSE:) Financial Group buying London-based private credit firm AlbaCore Capital last year.

Sumitomo Mitsui (NYSE:) Trust Holdings' Nikko Asset Management last month entered into advanced talks to buy a stake in French private debt firm Tikehau Capital.

($1 = 147.4600 yen)