PRIVATE equity group 3i has bought the debt management unit of Japanese lender Mizuho Corporate Bank for £18.3m.
Mizuho Investment Management (MIM) is one of Europe’s biggest debt managers with assets under management (AUM) of £3.7bn.
3i’s existing debt management activities will be merged with MIM to create a new specialist division handling £4bn of AUM.
The deal, first mooted in September last year, will see MIM chief executive Jeremy Ghose lead the merged unit.
Andrew Golding, who previously led 3i’s debt management activity, will become managing director with operational responsibility for the team.
The new division complements 3i’s other core business areas in infrastructure and private equity investment.
The firm, which bought rail rolling stock owner Eversholt from HSBC last year, has been granted regulatory approval from the Financial Services Authority to operate its new debt management unit.
Named 3i Debt Management, the arm will target new acquisitions, as well as look to grow organically, it said yesterday.
It will be focused on European and US markets but will also seek growth opportunities in India and the Middle East.
FINANCIAL services transactions partner at KPMG James Woolf advised on 3i’s acquisition of Mizuho Investment Management.
Trained as an auditor, he first joined the firm 22 years ago. He has advised on transactions in the investment management sector, as well as in insurance, since 1999.
John Humphrey led the advisory for UBS on the deal. As managing director of the Swiss bank’s financial institutions group, he has advised on several previous asset management deals over the past 15 years.
He was the lead financial adviser on the Henderson acquisition of rival fund manager Gartmore, which was completed earlier this year following months of speculation.
Humphrey also advised on Henderson’s initial public offering, as well as the Australian fund manager’s purchase of rival fund New Star.
He joined UBS in 1997 after he had qualified as a chartered accountant with KPMG, where he practised for six years in Sydney and London.
He is a graduate of the University of New South Wales with a degree in commerce.
David Higgins and James Grand from Freshfields Bruckhaus Deringer also advised on the deal.