Tokyo-based investment bank Nomura is to buy the U.S. and European public asset management businesses of the Australian asset manager Macquarie Group.
Nomura will acquire 100% of the stock of three companies that operate Macquarie’s U.S. and European public asset management business for an all-cash purchase price of US$1.8 billion.
The assets transferred to Nomura represent US$180 billion in retail and institutional client assets across equities, fixed income and multi-asset strategies.
Once completed, the deal is expected to significantly extend the global capabilities and client footprint of Nomura’s investment management division, which currently manages US$590 billion in client assets.
Total assets will increase to around US$770 billion, with more than 35% being managed on behalf of clients outside Japan, Nomura said in a statement, adding that the acquisition was the bank’s largest ever.
The deak will also provide Nomura with a scaled hub, headquartered in Philadelphia, to grow its international investment management business.
Shawn Lytle, president of Macquarie Funds and Head of Americas for Macquarie Group), John Pickard, CIO Equities & Multi-Asset, Greg Gizzi, CIO Fixed Income, and Milissa Hutchinson, Head of U.S. Wealth, will continue to manage the business following the acquisition.
“This acquisition will align with our 2030 global growth and diversification ambitions to invest in stable, high margin businesses,” said Kentaro Okuda, Nomura President and Group CEO.
“It will be transformational for our investment management division’s presence outside of Japan, adding significant scale in the U.S., strengthening our platform, and providing opportunities to build our public and private capabilities.
“We are delighted with the prospect of welcoming all 700-plus employees that will be joining the Nomura Group.”
As part of the deal, Nomura and Sydney-based Macquarie will collaborate on product and distribution opportunities, including Nomura being a U.S. wealth distribution partner for Macquarie Asset Management and providing continued access for U.S. wealth clients to Macquarie Asset Management’s Alternative investment capabilities.
The transaction is expected to close by the end of the calendar year, subject to customary closing conditions and regulatory approvals.
