(Bloomberg) -- Mizuho Financial Group Inc. bought a minority stake in Golub Capital, as it seeks to take advantage of the growing private credit markets in the US.
As part of the transaction giving Mizuho a less than 5% passive ownership of Golub’s management companies, the Tokyo-based bank will exclusively promote and offer Golub’s investment products to retail and high net worth investors in Japan, according to a statement Monday.
Golub plans to use proceeds from the deal to bolster its capacity to provide financing solutions to private equity sponsors.
The transactions marks Mizuho’s first stake in a US private credit asset manager, adding its name to the list of banks partnering with private credit asset managers to take advantage of the $1.7 trillion industry. Last week, Citigroup Inc. and Apollo Global Management Inc. announced they would partner on $25 billion of private credit deals over the next few years.
Firms have also been eyeing retail investors as the next source of growth for private credit. Amundi SA and First Eagle Investments have partnered up to raise up to $5 billion for a new private credit strategy that will offer wealthy investors in Europe, the Middle East and Asia access to private loans made up mid-size US companies.
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