Nomura and Macquarie have announced that they have entered into an agreement for Nomura to acquire Macquarie’s US and European public asset management business, with approximately USD180 billion in retail and institutional client assets across equities, fixed income and multi-asset strategies.
Under the terms of the agreement, Nomura will acquire 100 per cent of the stock of three companies that operate Macquarie’s US and European public asset management business for an all-cash purchase price of USD1.8 billion (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 writes that it has identified global asset management as a key strategic growth priority for the organisation. Through this transaction, Nomura writes that it will significantly expand the global capabilities and client footprint of its Investment Management Division, which currently manages approximately USD590 billion in client assets.
Upon completion, the total assets under management of Nomura’s Investment Management franchise are expected to increase to around USD770 billion, with more than 35 per cent 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, the firm writes.
“This high-operating margin business will bring well-established distribution networks in both retail and institutional segments. The business has a presence on nine of the top 10 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 (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 – which will build upon the strengths of the business and aim to position the platform to continue to deliver strong, long-term investment performance – 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,” says 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 US, 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 says: “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 organisations.
