MUFG Bank and Liquidity Capital M.C. Ltd. (Liquidity Capital), an Israeli fintech company, announced on August 7 that they would be entering into a Joint Venture Agreement to launch a debt financing business for startup companies mainly in Asia-Pacific.
Based on the Agreement, MUFG Bank and Liquidity Capital will establish a joint venture named Mars Growth Capital Pte. Ltd. (Mars Growth Capital) in Singapore. Mars Growth Capital will establish a debt fund (the “Fund”) based on a Limited Partnership Agreement entered between Mars Growth Capital, as a general partner, and MUFG Bank, as a limited partner. The Fund has an initial capital commitment of USD 80 million that will be used to provide financing to startups.
Combining MUFG’s superior network in Asia Pacific and market leading financial expertise with Liquidity Capital’s advanced technology enables the Fund to provide promising startups with easy access to funding and unique financing solutions.
With the changes in individuals’ preference to remote communications accelerated by COVID-19, it is expected that the market for the tech industry will grow, with even more new startups arising. With this joint venture, Liquidity Capital and MUFG Bank will not only promote financial inclusion and innovation in Asia Pacific, but also contribute to the sustainable development of society by helping businesses and communities adapt to and overcome the current crisis.
The establishment of Mars Growth Capital and the Fund and launch of the financing business are expected to take place in 2020.