Opalesque Industry Update - Mizuho Corporate Bank, Ltd. (“MHCB”) entered into a stock purchase agreement (the “Agreement”) with the shareholders of Eurekahedge Pte. Ltd., a Singapore-based company providing hedge fund research and data services (“Eurekahedge”). Pursuant to the Agreement, MHCB will acquire 95% of the issued and outstanding ordinary shares, on a fully-diluted basis, of Eurekahedge.|
In October 2010, MHCB established Mizuho Global Alternative Investments (“MGAI”) as a wholly owned subsidiary, to select and provide alternative investment hedge fund products for Japanese institutional clients including corporate pension funds and financial institutions.
MGAI and Eurekahedge previously entered into a business alliance agreement and are strengthening their collaborative efforts through joint projects such as the launch of the Japanese version MGAI-EH Newsletter, an analytical report on the hedge fund industry that MGAI issues in collaboration with Eurekahedge.
“The Eurekahedge Hedge Fund Index’s performance has risen over 220% since we have been tracking the industry from 2000 and the size of the industry has grown to US$ 1.7 trillion. 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,” said Alexander Mearns, CEO of Eurekahedge.
The acquisition of Eurekahedge, a specialist in providing independent research and data services, and the utilisation of the “Eurekahedge Fund Index” will enhance business synergies among asset management companies (such as Mizuho Alternative Investments, MHCB’s U.S. subsidiary) and securities firms within the Mizuho Financial Group, which will enable the Mizuho Financial Group to provide optimal products and services to better meet its customers’ needs.
“We are incredibly enthusiastic about working with Mizuho Corporate Bank and the team at MGAI and utilising our 10 years of hedge fund data and index experience to our mutual benefit.”
Terms of the Transaction
Upon the closing of the proposed transaction, Eurekahedge will become a subsidiary of MHCB. The founders of Eurekahedge and the current Chief Executive Officer will together retain the remaining 5% of the ordinary shares of Eurekahedge and will continue to participate in its management. By maintaining management continuity, MHCB intends for Eurekahedge to continue to offer its existing services to its current customers.
About Mizuho Corporate Bank and Mizuho Global Alternative Investments
Mizuho Corporate Bank, Ltd. provides financial and strategic solutions for the increasingly diverse and sophisticated needs of clients, focusing its efforts on serving major corporations, financial institutions, and public sector entities. A relationship management approach to serving clients enables Mizuho Corporate Bank, Ltd., together with affiliates such as Mizuho Securities Co. Ltd., to develop customized solutions in areas such as corporate, structured and project finance, investment banking, transaction banking and risk management. With offices in more than 30 countries, Mizuho Corporate Bank, Ltd. offers clients both localized service and the extensive reach of a global business network. Mizuho Corporate Bank, Ltd. is a subsidiary of the Japan-based Mizuho Financial Group, Inc. (NYSE: MFG), one of the largest financial services companies in the world, with total assets of over $1.5 trillion as of December 31, 2010.
MGAI is a subsidiary of Mizuho Corporate Bank and is to specialise in the gatekeeping business, which aims to select and provide alternative investment products, mainly hedge funds, to corporate pension funds, financial institutions, and other clients.
Founded in 2001, Eurekahedge is an independent financial data and research company focusing on alternative investments. Eurekahedge maintains coverage on 20,000 alternative funds globally and its research covers hedge funds, funds of funds, UCITS III hedge funds, private equity funds, Islamic funds, real estate funds, SRI funds and long-only absolute return funds.
In addition to fund data Eurekahedge publishes over 100 alternative investment benchmark indices along with the monthly Eurekahedge Report covering asset flows, fund performance, macroeconomic trends, league tables and specific index returns on the hedge fund industry.
Eurekahedge has offices in Singapore and New York and employs 41 people...Full press release: Source