SMBC Nikko Weighs $627 Million Japan Mezzanine Fund With One Investment Management
Updated
Updated · Bloomberg · Jun 1
SMBC Nikko Weighs $627 Million Japan Mezzanine Fund With One Investment Management
1 articles · Updated · Bloomberg · Jun 1
SMBC Nikko Securities is considering setting up a ¥100 billion ($627 million) mezzanine fund with One Investment Management, according to people familiar with the matter.
The vehicle would target institutional investors mainly outside Japan, including pensions and sovereign wealth funds, as it seeks to build its asset base.
The fund would provide subordinated loans and preferred shares for acquisition deals involving Japanese companies, giving buyers financing that sits between senior debt and equity.
With Japanese M&A valuations soaring, can this new fund deliver high returns without taking on excessive risk?
As SMBC Nikko invests in the same deals it advises on, how can it manage the obvious conflict of interest?
Will this new wave of foreign-backed acquisition funds finally upend Japan’s traditional stakeholder-focused corporate culture?