MUFG's consolidated subsidiary MUFG Bank and Liquidity Capital M.C. Ltd. (Liquidity Capital), an Israeli fintech company, announced today they will establish a new equity fund, the Mars Equity Dragon Fund, which will principally target middle and late stage startups mainly in Asia and Europe.

MUFG Bank and Liquidity Capital have also decided to increase their commitment amount to the debt funds under Mars Growth Capital Pte. Ltd. (Mars Growth Capital), a joint venture between the Bank and Liquidity Capital, from USD 750 million to USD 1 billion.

1. About the Mars Equity Dragon Fund

In recent years, investment in technology companies and other startups, together with the number of ‘unicorns,’ has been on the rise, in line with the new way of life that has spread due to the COVID-19 pandemic and the ample market liquidity driven by global monetary easing policies. Although changes in global financial markets have accelerated due to rising interest rates, particularly in the United States, the technology companies that support the expansion of online services remain the focus of attention, and the trend of growth among startups utilizing digital technologies is expected to continue.

MUFG Bank and Liquidity Capital utilize MUFG’s global network and lending expertise and Liquidity Capital’s AI technology to provide loans to foreign startups. With the newly established Mars Equity Dragon Fund, MUFG Bank and Liquidity Capital will build a system that can respond more flexibly to the funding needs of startups, while utilizing the AI model that we have cultivated through previous debt funds.

Overview of Mars Equity Dragon Fund

2. About the increase of debt funds under Mars Growth Capital

Since its inception in 2021, Mars Growth Capital has received inquiries about loans from a number of startups and as of August 31, 2023 has entered into loan agreements with 40 companies. In light of the market environment and strong demand, Mars Growth Capital has recently decided to increase the total investment commitment of each of the following funds.

Overview of the debt funds under Mars Growth Capital

Through the establishment of new equity fund and expansion of its funds, Mars Growth Capital will provide further support for the growth of startups in Asia and Europe, and MUFG Group will continue to seek to supply a wide range of financial services as one entity, including support for IPOs through MUFG's alliance with Morgan Stanley and considering to increases the business through invitation of outside partners.

[1] For details on Mars Growth Capital, please refer to the following website: Mars Growth Capital Pte. Ltd.

[2] For details on the debt funds under Mars Growth Capital, please refer to the following press releases: Mars Growth Capital Fund 1, LP Mars Growth Capital Pre-Unicorn Fund, LP Mars Growth Capital Europe Fund (tentative name) [3] Up to 1/3 of the total assets under management of Mars Growth Capital.