Nomura and Mizuho Lead Bidding for KKR’s Majority Stake in Avendus Capital

Nomura Holdings Inc. and Mizuho Financial Group Inc. are emerging as the top bidders for a majority stake in Avendus Capital Pvt., one of India’s largest investment banks. This stake, currently held by KKR & Co., represents 63% of Avendus and is valued at a minimum of $400 million.

Sources indicate that both Japanese firms have submitted the highest preliminary bids, while several other companies, including Carlyle Group Inc., are also interested in the stake. Avendus has appointed Rothschild & Co. as its sell-side advisor to navigate the bidding process.

A spokesperson for Avendus confirmed the receipt of multiple bids, stating that they are currently under evaluation. KKR and Avendus management are collaborating on the sale, with Avendus CEO and Co-founder Gaurav Deepak expressing a preference for a global asset manager or family office to ensure greater operational freedom and support for business expansion.

KKR initially acquired the stake in Avendus in 2015 for approximately $115 million and later invested additional funds in 2017. The management team, which plays a crucial role in the company’s core operations, will influence the transaction.

Under Deepak’s leadership, Avendus is focused on enhancing its wealth management, lending, and equity capital market services to diversify revenue streams beyond its investment banking division. Despite challenges posed by the pandemic and increasing competition, the firm remains a prime target for investors looking to capitalize on India’s vibrant IPO and merger market. With around 150 dealmakers, Avendus is also recognized as the largest investment bank in India by headcount.

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