SMBC Group Targets JPY 15 Trillion in Private Assets, Partners with Bain and Muzinich in Global Push
Sumitomo Mitsui Financial Group (SMBC Group) has unveiled an aggressive strategy to establish private asset management as a primary business pillar, targeting JPY 15 trillion in cross-asset management balances by 2031.
In an announcement made on December 24, 2025, the Japanese banking giant outlined a comprehensive plan to leverage its commercial banking, leasing, and asset management divisions to capture growth in alternative investments. To unify these efforts, the group launched a new global brand, "SMBC Private Markets."
European Partnerships and APAC Expansion
A cornerstone of the new initiative involves significant capital deployment in Europe. SMBC has formed strategic partnerships with investment heavyweights Bain Capital and Muzinich & Co. to expand its reach in the broadly syndicated European leveraged loan market. The bank has earmarked up to EUR 1.5 billion for each partnership, aiming to combine its own origination network with the asset management expertise of its partners.
Simultaneously, the group is bolstering its presence in the Asia-Pacific region. Sumitomo Mitsui DS Asset Management (SMDAM) is launching an enhanced real estate credit strategy with an initial commitment of USD 120 million. This initiative targets developed markets within APAC, looking to capitalize on the region's growing demand for alternative real estate financing.
Strategic Pivot
The move represents a structural shift for SMBC Group, aiming to create a second core revenue stream alongside its existing domestic asset management business. The strategy focuses on five high-growth asset classes:
- Leveraged finance
- Real estate credit
- Real estate equity
- Infrastructure credit
- Aircraft leasing
The group intends to utilize an integrated distribution model involving SMBC, SMDAM, and SMBC Nikko Securities to offer these private market solutions to a broader range of domestic and international clients.
Broader Context
This expansion aligns with the Japanese government’s ongoing initiative to position Japan as a leading global asset management center. By opening access to private assets—traditionally difficult for many investors to reach—SMBC aims to offer more sophisticated portfolio diversification options to domestic clients while attracting overseas investment into Japanese markets.
Norbert Gehrke
