Japan’s MUFG Extends Capital Commitment to MARS Growth Capital to $1B

Japan’s largest bank Mitsubishi UFJ Financial Group (MUFG), has increased its LP capital commitment to the non-dilutive funds operated by Mars Growth Capital from $750 million  to $1 billion.

This signals MUFG’s strong belief in the future potential of MARS Growth Capital, a joint venture between MUFG and Liquidity Group, which claims to be the largest AI-based financial asset management firm in the world. The Group’s patented machine learning and AI technology “enables capital deployment through more deals faster than at any time in the history of financial markets.”

Since its founding in 2021, MARS Growth Capital has “entered into non-dilutive financing agreements with over 40 mid-market and growth-stage technology companies.”

The decision to extend MARS Growth Capital’s non-dilutive funding war chest both points to the success of this strategy, “as well as confirms strong global demand for non-dilutive investment.”

With the combined financial might of MUFG and the decision-science AI technology of the Liquidity Group, MARS Growth Capital today “offers both non-dilutive financing and equity funding for burgeoning mid-market growth-stage technology companies, at previously unseen speeds.”

Fumitaka Nakahama, the Group Head of Global Corporate and Investment Banking at MUFG, stated:

“Our ambition is to stand as a perpetual growth ally for our partners, offering unparalleled financial versatility.”

MARS Growth Capital, a joint venture established in 2021 between Mitsubishi UFJ Financial Group (MUFG) and Liquidity Group, has “made its maiden foray into the equity space with the launch of Dragon Fund I.”

This new fund will “make growth equity investments into private, tech and tech-enabled companies.”

With an initial commitment of “up to US$500m, Dragon Fund I will initially focus on the Asia-Pacific region.” Deal sizes will “range between US$20mm to US$100mm and will have the flexibility to make primary and secondary investments.”

The launch of Dragon Fund builds upon the success of MARS Growth Capital’s non-dilutive funds powered by MUFG’s initial financial commitment of US$750m — now extended to $1b — and the decision-science technology of Liquidity Group, the largest AI-based financial asset management firm in the world. The Group’s patented machine learning and AI technology enables capital deployment through more deals faster than at any time in the history of financial markets.

The ability to extend the decision-science technology beyond non-dilutive financing into equity funding is not only a testament to the technology itself but, more importantly, the deep relationship between MUFG and the Liquidity Group.

Ridhi Chaudhary, Managing Director and a GP Partner of Dragon Fund I, said:

“With flexibility to make primary and secondary investments, Dragon Fund will look to invest in companies with exceptional management teams, strong execution track record and high growth potential.”