Mizuho Americas has signed a deal to acquire a middle-market placement agent Capstone Partners for an undisclosed amount.

The deal is expected to conclude in the second half of 2022.

Established in 2001, Capstone Partners offers fundraising and advisory services to private equity, credit, real assets, and infrastructure investment firms.

Mizuho Americas expects to bolster its investment bank offering with the addition of Capstone Partners. The acquisition will also further expand the bank’s solutions for clients in the alternative investment market, particularly financial sponsors.

Furthermore, it is expected to fortify the bank’s capital raising and distribution capabilities through Capstone’s global network of over 1,500 Limited Partners across the US, Europe, and Asia.

The network also presents expanded opportunities for cross-selling complementary investment banking solutions.

Commenting on the deal, Mizuho Americas chairman and CEO Shuji Matsuura said: “Financial sponsors are rapidly evolving beyond their traditional roles and expanding their lines of business.

“Capstone is an excellent example of a firm that offers sponsor clients with a strategic value-add solution, which aligns well with our integrated and global coverage approach.”

The deal comes as Mizuho strives to scale up its investment and corporate banking franchise. The bank has also been growing non-investment grade and financial sponsors franchise utilising its flagship investment grade bond and loan businesses.

Mizuho Americas head of Investment and Corporate Banking Michal Katz said: “We have made great progress growing our financial sponsors franchise.

“Capstone is an entrepreneurial and innovative firm that complements our alternatives and private equity client base, financing solutions, and culture.”

Following the transaction, Capstone Partners will operate as a business within the Banking Americas division of Mizuho Americas.

Capstone Partners CEO Clay Deniger and president Steve Standbridge will now serve as co-heads of the business.

Meanwhile, it was recently reported that the CEO of Mizuho Americas’ parent firm Mizuho Financial Group is set to resign after the bank has been reprimanded by the Japans’ banking regulator over technical system failures.