Mizuho's Asset Management Growth Strategizing Deals for Business Expansion in Japan

18 Jan, 2024

 Mizuho Financial Group (8411.T) is actively engaging in discussions with overseas asset managers to pursue strategic deals, with the goal of more than doubling its assets under management to $1 trillion over the next decade, according to a senior executive interviewed by Reuters.

Currently managing around 70 trillion yen ($474.71 billion) in assets, Mizuho aims to enter the "trillion-dollar club" to compete globally, emphasizing both volume and quality. Noriyuki Sato, the head of Mizuho's asset management business, highlights the ambition to increase private assets from approximately 4 trillion yen to about 20 trillion yen.Joining other top Japanese banks, Mizuho anticipates a surge in investments as Japan transitions from decades-long deflation. Sato reveals ongoing discussions with multiple overseas asset managers, exploring potential partnerships, investments, or acquisitions. The focus extends to alternative asset classes like private debt, private equity, infrastructure, and global stocks, as Mizuho endeavors to accelerate growth in alternative investments.Sato, who joined Mizuho from Singapore's PhillipCapital Group, notes that Japan is beginning to experience a shift toward alternative assets, mirroring trends seen earlier in the United States. Mizuho's rivals, such as Mitsubishi UFJ Financial Group and Sumitomo Mitsui Trust Holdings, have also pursued strategic acquisitions in the asset management sector. The dynamic landscape suggests a strategic push by Japanese banks to capitalize on evolving investment opportunities.(Disclaimer: Currency conversion based on $1 = 147.4600 yen)Reporting by Makiko Yamazaki and Ritsuko Shimizu; Editing by Jamie Freed.

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