Mizuho Corporate Bank, Ltd. plans to acquire a 95% stake of Eurekahedge Pte. Ltd., the Singapore-based data provider and research house.
Mizuho has been in partnership with Eurekahedge since it established a subsidiary in October called Mizuho Global Alternative Investments (MGAI), which provides alternative investment products to Japanese institutional clients.
The Eurekahedge Hedge Fund Indexs performance has risen over 220% since we have been tracking the industry from 2000 and the size of the industry has grown to $1.7 trillion, says Alexander Mearns, CEO of Eurekahedge. Despite some high-profile blow-ups in the last few years, the bulk of the industry weathered the most recent financial crisis rather well and we see 2011 as being a bumper year for the industry both in terms of asset growth and performance.
Mizuho says the acquisition will enhance business synergies among asset management companies and securities firms within the Mizuho Financial Group, which will enable Mizuho to provide optimal products and services to better meet its customers needs, the firm said in a statement.
After the acquisition is completed, Mizuho plans to launch a Japanese version of the MGAI-EH newsletter, an analytical report on the hedge fund industry that MGAI issues in collaboration with Eurekahedge.
Upon the closing of the acquisition, Eurekahedge will become a subsidiary of MHCB. The founders of Eurekahedge and the current CEO will together retain the remaining 5% of the ordinary shares of Eurekahedge and will continue to participate in its management.
Eurekahedge said last month that hedge fund performance had fallen flat in the first month of the year.