Business Essentials for Professionals


Mizuho Securities Of Japan Plans To Expand And Grow In The United States

Mizuho Securities Of Japan Plans To Expand And Grow In The United States
Mizuho Securities Co, the brokerage arm of Mizuho Financial Group, has "space for future growth" in the United States, and acquisitions are one possibility under consideration, according to CEO Yoshiro Hamamoto.
Its US business, which mostly consists of investment banking and trading, accounts for around one-third of the Japanese brokerage's profit.
According to Refinitiv statistics, it was also the top placed Asian firm in US investment banking league tables for the first half of this year, ranking 12th for both equity and debt underwriting and 18th for merger-and-acquisition consulting.
In an interview, Hamamoto stated that target organisations or potential partners may include research firms, asset managers, or boutique investment banks with strengths in specific industries.
Mizuho intends to expand coverage with more bankers in various industrial sectors, such as healthcare, he added.
"It doesn't have to be a merger, it could be a business alliance," Hamamoto added.
Capstone Partners, a Dallas, Texas-based private equity placement service that helps private equity firms locate limited partners to engage in their funds, was bought by the Mizuho group this year.
Hamamoto also stated that the brokerage intends to expand its business of connecting worldwide investors with Japanese entrepreneurs, which has gained popularity in recent years.
Despite global market challenges, money raised by Japanese startups increased 11 per cent year on year to more than 400 billion yen ($3 billion), according to data source INITIAL.
"The Japanese startup segment used to be small with just some certain domestic investors involved, but that's changing," Hamamoto said.

Christopher J. Mitchell

Markets | Companies | M&A | Innovation | People | Management | Lifestyle | World | Misc