Sumitomo Mitsui Financial Group and Nippon Life Insurance are in talks to set up a private credit fund with initial capital of at least ?500 billion ($3.1 billion), people familiar with the matter said, as the Japanese financial giants seek to capitalize on a surge in corporate deals.
Japan¡¯s second-largest bank and biggest life insurer are working on the details of the fund, which will provide loans for leveraged buyouts (LBOs) and other areas such as real estate transactions and mezzanine financing, said the people, who asked not to be identified because the discussions are confidential.
The two companies are planning to set up a joint venture that will manage the fund, which could also accept other investors, the people said. They have yet to decide the fund¡¯s size, and it¡¯s not clear yet how the commitments between the firms will be split.
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