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Nomura , Japan's largest investment bank and broking firm, has jumped into the race to acquire homegrown investment bank Avendus, a KKR portfolio company, said people in the know, switching from advisor on the deal to interested party. The Avendus sale process has already seen keen interest from Japanese financial conglomerate Mizuho , perceived as the most aggressive contender, and US buyout fund Carlyle , ET reported September 10. Earlier this year, KKR had appointed Nomura as the sell-side banker for the Avendus transaction but with the firm joining the fray as a potential suitor, the Japanese bank has relinquished the mandate.
KKR may appoint a new advisor. The due diligence process is underway before final offers are submitted by the end of the month. KKR and Nomura declined to comment.
Final offers by month-end The due diligence process is underway before final offers are submitted by the end of the month. KKR and Nomura declined to comment. Artificial Intelligence(AI) Java Programming with ChatGPT: Learn using Generative AI By - Metla Sudha Sekhar, Developer and Lead Instructor View Program Artificial Intelligence(AI) Basics of Generative AI : Unveiling Tomorrow's Innovations By - Metla Sudha Sekhar, Developer and Lead Instructor View Program Artificial Intelligence(AI) Generative AI for Dynamic Java Web Applications with ChatGPT By - Metla Sudha Sekhar, Developer and Lead Instructor View Program Artificial Intelligence(AI) Mastering C++ Fundamentals with Generative AI: A Hands-On By - Metla Sudha Sekhar, Developer and Lead Instructor View Program Artificial Intelligence(AI) Master in Python Language Quickly Using the ChatGPT Open AI By - Metla Sudha Sekhar, Developer and Lead Instructor View Program Office Productivity Zero to Hero in Microsoft Excel: Complete Excel guide 2024 By - Metla Sudha Sekhar, Developer and Lead Instructor View Program Astrology Vastu Shastra Course By - Sachenkumar Rai, Vastu Shashtri View Program Data Science SQL for Data Science along with Data Analytics and Data Visualization By - Metla Sudha Sekhar, Developer and Lead Instructor View Program Web Development A Comprehensive ASP.
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Gaja Capital , another external shareholder, owns a minority stake and is likely to exercise its tag-along rights. This requires a majority shareholder to include minority shareholders in a sale on the same terms. Sources said up to two-thirds of the company could be up for grabs based on the final valuation numbers.
The three founders of Avendus and senior employees own the rest. The US buyout group, led at the time by Sanjay Nayar, picked up a controlling stake in Avendus Capital in 2015 from Eastgate Capital Group and Americorp Ventures, the early investors, for $115 million of primary and secondary capital infusion, with an aim to create a full-service financial services company. The implied valuation then was around $206 million for the entire firm.
Interestingly, Nayar is currently a special advisor to Mizuho in India and is spearheading negotiations on behalf of the Japanese firm. Nomura’s new focus Following the 2021 implosion of Bill Hwang’s Archegos Capital , Nomura, led by chief executive Kentaro Okuda , has been making a strategic shift toward wealth and asset management as well as alternative asset classes such as private credit and private equity besides advisory businesses in fast-growing markets to deepen its global footprint. Nomura took a hit of $2.
9 billion out of the total $10 billion write-offs stemming from the Archegos fiasco. Okuda, who took charge in 2020, has been on a mission to lower costs while simultaneously reducing Nomura’s reliance on volatile revenue streams from trading and investment banking. The firm told investors in May that it’s aiming to nearly double its pre-tax profit over seven years, pushing deeper into wealth management because it offers more stability than trading.
The firm received its merchant banking licence in India in 2008 but came into global prominence the same year after buying out the Lehman Brothers’ franchise in the Asia-Pacific region, including Japan and Australia. Since then, it has built a strong presence across products—equity capital markets, M&A advisory and financing apart from fixed income and institutional equities/broking. Avendus has been diversifying beyond its investment banking vertical, which remains the single largest contributor to its topline--40% in FY24.
It hired Citi and Axis Bank veteran Apurva Sahijwani in May to head its wealth management practice. Having exceeded $6 billion in assets under management (AUM), the franchise is looking at a fivefold jump to $30 billion by 2030, executives said. Apart from ultra HNIs and family offices, Avendus also advises over 100 corporate treasuries and manages treasury assets worth $3 billion.
“Avendus is also leveraging its deep relationship with entrepreneurs and family offices to cross-sell products,” said an executive who tracks the company. “For example, it has worked very closely with Swiggy and is also among the lead advisors for the foodtech firm’s upcoming IPO. Its wealth team managed to get orders of ?2,000-2,500 crore from clients, which in turn played a big role in the decision to upsize the offering.
” Avendus Capital, the investment banking arm, is mostly known for creating a niche in technology, internet and IT services, helping to buy and sell businesses or raise capital. However, it has in recent times also doubled down on deals in pharmaceuticals, healthcare, financial services and the consumer segment to offer a larger suite of advisory services. (You can now subscribe to our Economic Times WhatsApp channel ).
