(Bloomberg) — Mitsubishi UFJ Monetary Group Inc. is making ready to launch a fund that gives debt financing to Asian startups in an effort to win investment-banking enterprise via subsequent preliminary public choices.
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Japan’s largest lender will begin a $300 million fund early subsequent 12 months after upsizing its first joint-venture fund earlier this 12 months, Chief Government Officer Hironori Kamezawa stated in an interview. It is going to particularly goal so-called unicorns, corporations with a valuation of no less than $1 billion, or these nearing that stage, he stated.
“If these corporations grow to be profitable, they are going to go on to do an IPO,” he stated.
The fund, principally geared toward corporations within the information-technology sector, is one other demonstration of Kamezawa’s endeavors into new territory for his sprawling megabank. After taking the helm final 12 months he’s sought to switch bodily banking companies and prioritize areas akin to digital lending to generate new avenues of enlargement to offset the robust progress outlook in Japan.
Final 12 months, MUFG invested $700 million in ride-hailing big Seize Holdings Ltd. and made a enterprise tie-up with the Singapore firm. He stated the Seize deal was geared toward complementing its conventional retail banking community in Asia with a digital channel.
MUFG’s goal shouldn’t be restricted to debt financing to those startups. Kamezawa stated he hopes MUFG and its alliance associate Morgan Stanley can supply investment-banking companies when the startups later bear IPOs.
“We’re additionally excited about teaming up with Morgan Stanley in supporting their IPO course of,” he stated. “There are such prospects if Asia’s fintech trade makes additional progress.”
Kamezawa stated its Singapore three way partnership arrange final 12 months with Israeli firm Liquidity Capital M.C. Ltd. has seen robust demand for loans by startup corporations within the area and was expanded to $200 million in September. The second fund, launching early subsequent 12 months, will function along with that, with Liquidity Capital utilizing its experience to evaluate the creditworthiness of the goal startups.
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