Japan-based conglomerate SBI is to raise Y49bn ($533m) in a public share issue to fund its venture capital efforts outside of the country after success in partnering with some of Asia’s biggest research and financial institutions.
Newswire Reuters said the share issuance would represent about a 20% dilution of SBI’s stock and quoted its statement: "We see the turmoil in the global financial economy as rather a good opportunity for investment and we have been stepping up investments via funds in overseas companies with growth expectations."
Outside of Japan, the company manages its venture capital operations through SBI Ven Capital. In China, SBI has several country-focused funds via separate joint ventures with Singapore sovereign wealth fund Temasek, and Chinese university-backed development organizations Tsinghua and Beida Jade Bird. In India, SBI has established a country-focused fund with State Bank of India.
The overall private equity division of SBI manages $3.4bn in funds and has invested in more than 500 companies.