SBI Holdings, a financial conglomerate originated from Japan-based Softbank’s investment division with no capital relationship since August 2006, and the state-backed Netherlands Development Finance Company (known as FMO) are raising an $80m fund to invest in the financial sector in emerging Asia.
SBI Ven Capital, part of SBI’s private equity division managing $3bn and based in Singapore, will manage the planned fund, which is 85% towards a first close of $60m.
FMO manages €5.9bn ($7bn) and provides debt and equity to more than 180 financial institutions in emerging markets.
The financial-focused fund is the second announced by SBI in partnership with a peer this year. In February, Mahindra Satyam, an India-based consulting, IT and business services provider, and SBI Holdings launched a $50m global fund to invest in information and communications technology companies globally.
Last year, SBI’s chief executive said in an interview by Global Corporate Venturing and Martin Haemmig, associate professor at Stanford University, it wanted to be the "world’s SBI" to capture the growth in Asia.
Yoshitaka Kitao, chief executive of SBI Holdings (pictured), said: "There is no doubt that the 21st century is the Asian century.
"In contrast to the developed countries of the west, emerging Asian countries such as China will boost their global prominence in terms of economic scale and future growth potential. Considering global demographics by country and region, China has a population of 1.3 billion and India 1.2 billion, with Asia as a whole accounting for approximately half the people of the world."
Kitao added: "In order to take full advantage of this macro trend, the SBI Group will fully lever its know-how and experience accumulated through its operations in Japan, and the established global network with prominent local partners through the asset management business. We will work to export our financial ecosystem to become a truly global corporation, with its axis in the emerging market countries and a particular focus on Asia.
"We have no doubt that our future growth opportunities lie in the overseas emerging market countries. To fully leverage the high growth potential of these markets, we are transitioning ourselves to become the ‘world’s SBI’, by exporting our financial service businesses to these countries and by investing heavily in Asian emerging countries."