Mizuho Bank and Mizuho Capital, both consolidated subsidiaries of Mizuho Financial Group, have established the “Mizuho Business Succession and Capital Strategy Fund” (total amount: 10 billion yen) to support “capital policies aimed at smooth business succession and strengthening competitiveness of Japanese companies.”

Mizuho has positioned “Strengthening Japan’s Competitiveness” as a focus business in its medium-term business plan and is working to address business succession challenges faced by Japanese companies due to aging owners and lack of successors. Until now, along with consulting support, Mizuho has been providing risk money through equity and mezzanine financing via Mizuho Capital through “Mizuho Business Succession Fund No. 11” (established in October 2017) and “Mizuho Business Succession Fund No. 22″ (established in June 2020).”

The new fund, in addition to being positioned as a successor to these previous funds, aims to respond more flexibly to the increasing needs for capital policies such as buyouts and privatization.

Specifically, there has been an increase in M&A triggered by business succession and MBO privatizations of listed companies in response to Tokyo Stock Exchange reforms. Mizuho will actively support their clients’ business succession and growth by providing more agile capital funding to address the diversifying needs for business succession and growth resulting from these regulatory and environmental changes, while fully leveraging the Group’s integrated consulting functions.

Source: FINTECHOBSERVER