Mizuho Financial Group is set to acquire a majority stake in the Indian investment bank Avendus Capital from the U.S. private equity firm KKR & Co. The deal, which has been under negotiation for months, values Avendus Capital at ₹60 billion rupees, or $660 million.

Mizuho Securities, the securities arm of Mizuho Financial Group, will acquire between 61.6% and 78.3% of Avendus' shares, making it a consolidated subsidiary. While the exact stake and final deal value are still being worked out, reports indicate a figure of around $523 million. The Avendus board met on Tuesday to consider granting Mizuho "negative control" after the deal is finalized. Negative control would give Mizuho the right to veto key business decisions.

KKR's decision to sell its stake in Avendus follows nearly a decade of investment in the Indian financial services firm. In 2015, KKR acquired a 60% stake in Avendus for approximately ₹950 crore. Later, KKR increased its ownership to 63%. The purchase of Avendus shares from Eastgate Capital Group Limited and Americorp Ventures was part of the transaction. Now, KKR is expected to realize a 3.5x return on its investment.

Prior to the Mizuho deal, KKR bought out Avendus co-founder Ranu Vohra's 6% stake in a deal valuing Avendus at ₹11,500 crore. This acquisition cleared the path for Mizuho to close the buyout with KKR. Other Avendus founders, CEO Gaurav Deepak and Kaushal Aggarwal, will retain their holdings and continue to lead the company. Founded in 1999, Avendus offers investment banking, wealth management, and financing services.

The acquisition of Avendus is expected to boost Mizuho's presence in India's rapidly growing market for IPOs and corporate deals. It also aligns with the increasing interest of Japanese financial institutions in the Indian market, driven by India's fast-growing economy and the attractiveness of Indian firms. Earlier, SMBC acquired a 20% stake in Yes Bank. Mizuho itself has been expanding in India, including a 15% stake in Kisetsu Saison Finance.

Avendus has offices in 10 Indian cities, as well as locations in the U.S. and Singapore. For the nine months ending December 2024, Avendus reported revenue of ₹1,035 crore and a net profit of ₹170 crore. The acquisition is subject to regulatory approvals. Rothschild & Co. advised the sellers in the transaction.