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Mizuho Financial Group Targets $1 Trillion Assets Under Management

Mizuho to Expand in Alternative Strategies, Aims to Compete Globally in Asset Management
Japan
m 8411.TSE Blue Chip 150
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Mizuho Financial Group, a leading Japanese banking conglomerate, has set an ambitious target to double its assets under management to $1 trillion, approximately 148 trillion yen, within the next decade. This expansion plan was outlined by Noriyuki Sato, senior executive officer and head of Mizuho’s asset management company, in an exclusive interview with Nikkei.

The strategy for achieving this goal involves a dual approach. Firstly, Mizuho intends to acquire companies specializing in alternative financial strategies, like private debt, which encompasses investor-funded corporate lending and real estate investment. Secondly, the group will develop tailored investment products for individual clients of Rakuten Securities, its business partner.

Currently, Mizuho’s assets under management stand at 67 trillion yen. This growth initiative places it on a path to join the ranks of asset management giants like America’s BlackRock and Vanguard Group, which managed $8.5 trillion and $7.2 trillion respectively as of 2022.

Asset Management One, a subsidiary of Mizuho, partly owned by Dai-ichi Life Holdings, plays a pivotal role in this expansion. Founded in 2016, AM-One, which currently manages 64 trillion yen, is poised to compete on a global scale, particularly in the realm of alternative investments.

Emphasizing the strategic importance of the private debt business, Sato highlights its role as an inflation hedge in the current economic climate. Mizuho’s collaboration with Rakuten Securities, in which it holds a 49% stake, is also key to this strategy. The partnership aims to offer Rakuten customers a comprehensive portfolio, including both passive and active investment funds.

Sato’s extensive experience in the financial sector, dating back to his start at the Industrial Bank of Japan in 1989 and including key roles in real estate investment trust management, underpins this ambitious growth strategy.

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