Nomura, Japan’s largest investment bank and brokerage, is acquiring Macquarie Group’s U.S. and European public asset management businesses for $1.8 billion. This marks Nomura’s most significant overseas expansion since its unsuccessful bid to acquire assets from Lehman Brothers in 2008.
Under the deal, Nomura will manage publicly traded assets, take over the investment teams, and retain the existing management platform. The Japanese bank has faced challenges in expanding internationally but sees this acquisition as a key opportunity to grow beyond its domestic market.
The deal reflects a broader trend where Japanese financial institutions, facing a shrinking domestic market, are focusing on international growth. Asset management has become a crucial area for these firms, as it offers more stable, fee-based revenue compared to market-driven returns.
Nomura CEO Kentaro Okuda emphasized the importance of building a strong investment management platform. “The market is unstable, but a robust investment platform is key for our long-term strategy,” Okuda said. He added that the transaction had undergone thorough due diligence and is expected to withstand market volatility.
The acquisition is expected to close by the end of 2025, with the entire transaction being cash-funded. Nomura did not plan to seek external financing for the deal.
This move expands Nomura’s total assets under management (AUM) to around $770 billion, up from $590 billion. In 2016, Nomura purchased a 41% stake in American Century Investments for over $1 billion, and in 2019, it acquired Greentech Capital Advisors.
Shares of Nomura rose 0.6%, while Macquarie’s shares climbed by 1.5%.
Macquarie Group, Australia’s largest investment bank, will retain its public investments business in Australia and continue focusing on both public and private markets. The company plans to collaborate with Nomura on product offerings and distribution channels. Recently, Macquarie has also been restructuring its North American operations, including exiting several debt market segments.
Analyst Thomas Strong of Citi noted that the transaction would sharpen Macquarie’s focus on its strengths in private markets and the Australian market.
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