Mitsubishi UFJ Financial Group Inc.: MUFG Bank and Liquidity Capital to Establish 2nd Joint Venture Debt Fund in Singapore (PDF / 114KB)

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MUFG Bank and Liquidity Capital to Establish 2nd Joint Venture Debt Fund in Singapore (PDF / 114KB)

Mitsubishi UFJ Financial Group, Inc. (MUFG)

MUFG Bank, Ltd.

MUFG Bank and Liquidity Capital to Establish 2nd Joint Venture Debt Fund in Singapore

Tokyo/Singapore, January 17, 2022 --- MUFG's core banking subsidiary MUFG Bank announced today the signing of a Limited Partner Agreement (the Agreement) between general partner Mars Growth Capital Pte. Ltd.[1] (Mars Growth Capital) and limited partner MUFG Bank, with the purpose of establishing a new debt fund (Fund 2).

MUFG Bank and Liquidity Capital M.C. (Liquidity Capital), an Israeli fintech company, entered into a joint venture agreement in August 2020[2] and launched their first debt fund (Fund 1). Mars Growth Capital, a joint venture between MUFG Bank and Liquidity Capital, has been providing debt finance to mainly middle-stage startups through Fund 1 by utilizing a unique AI credit scoring model developed by Liquidity Capital. In September 2021, MUFG Bank increased its LP commitment to Fund 1 from USD 80 million to USD 200 million[3], in light of potential opportunities for further business expansion. As of December 2021, Mars Growth Capital has signed loan agreements with 12 growing startup companies.

Fund 2 will provide debt financing to later-stagepre-unicorn and unicorn companies[4] which aim to go public in the near future. MUFG Bank's LP commitment to Fund 2 is USD 300 million, and MUFG aims to provide a wide range of financial services to these companies in the future.

Since the start of the COVID-19 pandemic, the digital shift in society continues to accelerate and online services continue to gain popularity in the Asia-Pacific region. Tech companies have contributed greatly to this trend, with many becoming unicorns and an increasing number completing IPOs in recent years. By providing financial support to startups throughout their entire growth cycle through Fund 1 and Fund 2, MUFG Bank is enhancing its commitment to developing new industries and solving social issues.

Overview of Fund 2

Name

Mars Growth Capital Pre-Unicorn Fund, LP

Expected date of establishment

January 2022

Capital commitment by LP

USD 300 million

General Partner (GP)

Mars Growth Capital Pte. Ltd.

Limited Partner (LP)

MUFG Bank, Ltd.

Target companies

Pre-unicorn and unicorn companies

  1. For details on Mars Growth Capital Pte. Ltd., please refer to the following link https://www.marsgrowth.com/

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  1. For details on joint business with Liquidity Capital M.C. Ltd., please refer to the following link https://www.mufg.jp/dam/pressrelease/2020/pdf/news-20200807-001_en.pdf
  2. For details on Fund 1, please refer to the following link https://www.mufg.jp/dam/pressrelease/2021/pdf/news-20210901-001_en.pdf
  3. Unicorn companies are private startups valued above USD 1 billion. Pre-unicorn companies are companies that are expected to become unicorn companies within a year.
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About MUFG

Mitsubishi UFJ Financial Group, Inc. (MUFG) is one of the world's leading financial groups. Headquartered in Tokyo and with over 360 years of history, MUFG has a global network with approximately 2,500 locations in more than 50 countries. The Group has about 170,000 employees and offers services including commercial banking, trust banking, securities, credit cards, consumer finance, asset management, and leasing. The Group aims to "be the world's most trusted financial group" through close collaboration among our operating companies and flexibly respond to all of the financial needs of our customers, serving society, and fostering shared and sustainable growth for a better world. MUFG's shares trade on the Tokyo, Nagoya, and New York stock exchanges. For more information, visit https://www.mufg.jp/english.

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Disclaimer

Mitsubishi UFJ Financial Group Inc. published this content on 17 January 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 17 January 2022 01:12:29 UTC.

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