Mitsubishi UFJ Financial Group Inc. is preparing to launch a fund that provides debt financing to Asian startups in an effort to win investment-banking business through subsequent initial public offerings.
Japan’s largest lender will start a $300 million (¥34 billion) fund early next year after upsizing its first joint-venture fund earlier this year, Chief Executive Officer Hironori Kamezawa said in an interview. It will specifically target so-called unicorns, companies with a valuation of at least $1 billion, or those nearing that stage, he said.
"If these companies become successful, they will go on to do an IPO,” he said.