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.
Fumitaka Nakahama, Group Head of Global Corporate and Investment Banking at MUFG, remarked, “With the initial close of Dragon Fund I, MARS Growth Capital underscores our commitment to offering financial stability for high-potential enterprises. Our vision is to be a sustained growth ally for these firms by furnishing bespoke financial solutions and granting them unswerving access to our expansive global resources.”
“The new Dragon Fund is another significant step in our partnership with MUFG through MARS Growth Capital and embodies our vision to provide holistic financial growth solutions to mid-market and pre-IPO technology companies across the globe,” said Ron Daniel, Co-Founder and Chief Executive Officer of Liquidity Group. “Our ability to extend our non-dilutive financial solutions through equity financing is a direct result of Liquidity Group’s technology’s ability to quickly analyze and deliver tailored financial solutions to successful technology companies across both their immediate and future capital needs.”
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,” She continued, “With the power of Liquidity Group’s decision-science AI platform, the investment teams will be able to evaluate investment opportunities comprehensively and at a faster pace while investing in the most attractive ones to generate superior returns for the LPs. The technology will also allow for automated and real-time monitoring of the portfolio investments.”