Nikko Asset Management is taking a minority stake in London-based fund manager Osmosis Investment Management that will give Nikko AM exclusive distribution rights in Asia-Pacific.
Osmosis is a specialist sustainable investment manager with around $13.6 billion in sustainable assets under management.
The deal gets Nikko AM a place on the board of Osmosis (Holdings) Limited and is described as a strategic partnership.
Ben Dear, Osmosis CEO, said the deal was based on a “shared vision of the scale of the opportunity, an alignment of values, and a belief that the capital markets have a pivotal role to play in directing capital towards those companies that are leading the transition to a more sustainable planet”.
Osmosis has already made “significant strides” in Asia, including with its first Japanese institutional investor, he said.
The deal means Nikko AM will have exclusive distribution and client service rights for Osmosis investment products in the Asia-Pacific region outside of Australia and New Zealand, as well as the Middle East.
The acquisition is subject to regulatory approval by the UK’s Financial Conduct Authority and is likely to be completed by the end of April 2024.
Stefanie Drews, Nikko AM president, said: “We are delighted to be able to enter into partnership with a company of such exceptional credentials in the sustainable investment space. Osmosis is truly unique, with an innovative approach that has proven itself over the years.”
Osmosis Investment Management launched in 2009 and is majority-owned by management and employees. The firm counts government and state pension funds among its client roster, which spans the UK, Europe, the Nordics, North and South America, Asia and Australia.
Nikko AM manages around $219.2 billion and is one of Asia’s largest asset managers, including with a range of ETFs.
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