Japan-based Nomura said it has agreed to acquire Australia-based Macquarie’s US and European public asset management business, which has $180 billion in retail and institutional client assets across equities, fixed income and multi-asset strategies.
Nomura will acquire 100% of the stock of three companies that operate Macquarie’s US and European public asset management business for an all-cash purchase price of $1.8 billion.
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.
“Through this transaction, Nomura will significantly expand the global capabilities and client footprint of its Investment Management Division, which currently manages approximately US$590 billion in client assets,” said Nomura.
“Upon completion, the total assets under management of Nomura’s Investment Management franchise are expected to increase to around US$770 billion, 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 business has a presence on nine of the top ten retail distribution platforms in the U.S., as well as strong institutional relationships, including within U.S. 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 highly experienced team led by Shawn Lytle (President of the Macquarie Funds and Head of Americas for Macquarie Group).
“Shawn, alongside 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.
“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.”
Kentaro Okuda, Nomura President and Group CEO, said: “This acquisition will align with our 2030 global growth and diversification ambitions to invest in stable, high margin businesses.
“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, said: “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.”
Macquarie Asset Management (MAM) said: “MAM will retain its public investments business in Macquarie’s home market of Australia, where it will continue to operate a leading, integrated full-service asset management business across public and private markets servicing institutions, governments and individual investors …
“As a result of the transaction, MAM will be a more focused, leading, global private markets alternatives business serving the fast-growing Institutional, Insurance and Wealth markets, with a scaled full-service asset manager in Australia.”
Ben Way, Head of MAM, said: “We are proud of the public investments business we have built and grown over many decades. We are pleased that Nomura will carry it forward into a new phase of growth in North America and Europe. We are also excited to further strengthen our collaboration with Nomura, creating benefits for our respective clients. “
“This transaction will allow MAM to build on our leading global position in private markets, and our leading position in Australian public markets, as we focus on providing solutions for our Institutional, Insurance and Wealth clients.”