Nomura and Macquarie have entered into an agreement for Nomura to acquire Macquarie’s US and European public asset management business, with approximately $180bn in retail and institutional client assets across equities, fixed income and multi-asset strategies.
A statement today (22 April) said under the terms of the agreement, Nomura will acquire 100% of the stock of three companies hat operate Macquarie’s US and European public asset management business for an all-cash purchase price of $1.8bn (subject to closing adjustments).
The transaction is targeted to close by the end of the calendar year, subject to customary closing conditions and regulatory approvals.
Nomura said it had identified global asset management as a key strategic growth priority for the organization. Through this transaction, Nomura will significantly expand the global capabilities and client footprint of its investment management division, which currently manages approximately $590bn in client assets.
Upon completion, the total assets under management of Nomura’s Investment Management franchise are expected to increase to around $770bn, with more than 35% being managed on behalf of clients outside Japan. This acquisition will also provide Nomura with a scaled hub, headquartered in Philadelphia, to further grow its international investment management business.
This high-operating margin business will bring well-established distribution networks in both retail and institutional segments, the statement said, adding that it has a presence on nine of the top ten retail distribution platforms in the US, as well as strong institutional relationships, including within US insurance, a growing sector for asset managers globally.
With its origins in Delaware Investments, which was established in 1929 and acquired by Macquarie in 2010, the business has a long history of serving clients through actively managed strategies.
The business is currently managed by a team led by Shawn Lytle, who is president of the Macquarie Funds and head of Americas for Macquarie Group. Lytle, alongside John Pickard, CIO equities & multi-asset, Greg Gizzi, CIO fixed income, and Milissa Hutchinson, head of US wealth, will continue to manage the business following the acquisition.
In partnership with this management team, Nomura plans to carry out several initiatives to support organic growth, increased AUM scale, and diversification of the business’s capability set post-acquisition. These initiatives include:
• Developing new investment capabilities designed to meet the needs of clients
• Scaling the active ETF platform established by the business in mid-2023
• Investing in talent and data analytics to grow the distribution platform
• Leveraging the business’s existing distribution channels to provide its retail and institutional clients with access to the broader set of Nomura asset management capabilities
“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.”
Chris Willcox, Nomura’s chairman of the investment management division added: “This transaction will accelerate the expansion of our global Investment Management business and will be a significant step in building a truly global franchise with a comprehensive set of solutions to serve investors worldwide.”
As part of the transaction, Nomura and Macquarie have agreed to collaborate on product and distribution opportunities, including Nomura being a US wealth distribution partner for Macquarie Asset Management and providing continued access for US wealth clients to Macquarie Asset Management’s Alternative investment capabilities. Additionally, Nomura has committed to providing seed capital for a range of Macquarie Asset Management’s Alternative funds tailored for US wealth clients.
A joint working group between Nomura and Macquarie will also be established to explore additional potential opportunities to create value for clients through further collaboration between the two organizations.
