Tata Capital Pte Limited Enters into a Strategic Partnership with Japan’s Mizuho Securities
Tata Capital Pte Limited, Singapore, a wholly-owned subsidiary of Tata Capital Limited, today announced that it has concluded a limited liability partnership agreement with Mizuho Securities Co. Ltd (MHSC) focused on (i) developing a growth capital private equity business in India and (ii) investing through private transactions in Indian companies requiring growth capital.
As part of the agreement, Tata Capital Pte Limited will partner with MHSC to raise private equity funds in Japan and other key international markets like South-East Asia, Middle-East and parts of APAC for its Singapore–based Growth Fund which will target investment opportunities in Indian companies in the mid-market space.
Private Equity is one of the key business verticals identified by Tata Capital as a part of its growth strategy. The Tata Capital Growth Fund aims to provide capital and operational excellence to mid-market companies through classic private equity transactions. It is estimated that over $ 35 bn of equity capital would be required per annum to enable Indian mid-market companies to achieve their growth potential and Tata Capital Growth Fund aspires to provide a part of this risk capital
Speaking on the announcement, Mr. Praveen P Kadle, Managing Director & CEO, Tata Capital Limited, said, “The total savings base of Japan offers a stable source of capital. However, currently only a small fraction of this flows into India. With this strategic alliance we are confident that Japanese and other International investors will be able to invest in high potential mid market companies in India. The Tatas, with their varied experience and trusted legacy, bring several unique advantages in the mid-market space in terms of sourcing transactions, evaluating opportunities, adding value to investments and profitable exit.”
Mizuho classifies India as a key business destination in Asia and believes this alliance will provide large potential for business expansion in India. Mizuho believes that the time is right for Japanese investors to invest in India, leveraging the opportunities the market offers and is confident of the success of the fund,
About Tata Capital Pte. Limited
Tata Capital Pte. Limited, domiciled in Singapore, is the headquarters of the international operations of Tata Capital Limited and shall have global responsibilities and management oversight for its existing and new subsidiaries in Asia (excluding India) and Europe. Tata Capital Pte. Limited plans to establish a strong independent local franchise and augment Tata Capital’s domestic presence in areas of corporate and consumer lending, proprietary investments, advisory, broking, investment banking and private equity. To provide services to Tata Companies operating globally, Tata Capital Pte. Limited shall also establish various centers of excellence in Singapore or in other geographies that it operates in.
About Mizuho Securities
The new Mizuho Securities was formed on May 7, 2009, through the merger of Mizuho Securities and Shinko Securities. Concentrating on its combined strength as a global investment bank backed by a nationwide client base in Japan and full-service securities business network, Mizuho Securities provides best-in-class professional services to its diverse array of clients, ranging from individuals and households to domestic and overseas institutional investors, financial institutions, non-financial companies, and public corporations and entities. Mizuho Securities, as a global investment bank, contributes to the development and expansion of capital markets, and, through its corporate activities, seeks to contribute to the creation of a better society where sustainable development is a reality.
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