Mizuho Financial Group Inc., the large Japanese bank, has agreed to buy U.S.-based Capstone Partners to expand in the business of helping private equity firms raise funds.
Mizuho Americas, the firm’s stateside subsidiary, is paying an undisclosed amount for Capstone, according to a statement obtained by Bloomberg News. The deal is slated to be completed in the first half of the year.
The acquisition will help grow the bank’s list of financial sponsors and bolster its capital-raising efforts. The business will be aided by Capstone’s network of more than 1,500 limited partners across the U.S., Europe and Asia.
“Financial sponsors are rapidly evolving beyond their traditional roles and expanding their lines of business,” Shuji Matsuura, chairman and chief executive officer at Mizuho Americas, said in a statement. “Capstone is an excellent example of a firm that offers sponsor clients with a strategic value-add solution, which aligns well with our integrated and global coverage approach.”
In recent years, Mizuho Americas has been expanding its business of catering to the largest private equity companies in the world and helping them with investment transactions and other liquidity events. In 2018, it hired Stancel Riley from Wells Fargo & Co. and Richard Park from Deutsche Bank AG to be co-heads of its financial sponsors group.
The division in recent years was joint lead arranger and joint bookrunner for KKR & Co.’s $6.6 billion leveraged buyout of BMC Software Inc. It also was the initial coordinating lead arranger of the $5.8 billion financing of Venture Global Calcasieu Pass LLC on behalf of Stonepeak Infrastructure Partners.
As part of the deal, Capstone CEO Clay Deniger and Managing Director Steve Standbridge will join the banking Americas division of Mizuho Americas to co-head the Capstone business.
Mizuho was advised by PricewaterhouseCoopers LLP, Houlihan Lokey Inc., and Debevoise & Plimpton. Capstone’s advisers were Stifel Financial Inc.’s Keefe Bruyette & Woods and Vinson & Elkins.