Japanese financial services group Nomura agreed to acquire Macquarie’s U.S. and European public asset management businesses in a $1.8 billion all-cash deal.
Nomura is buying three companies from Macquarie: Macquarie Management Holdings, a Delaware-based U.S. public asset management business; and Europe-based Macquarie Investment Management Holdings (Luxembourg) and Macquarie Investment Management Holdings (Austria). The three firms run about $180 billion in institutional and retail assets across equities, fixed income and multiasset strategies.
The deal is set to close by the end of the year and is subject to closing conditions and regulatory approvals, a news release said.
Global asset management is a key strategic growth priority for Nomura, the release said. The firm currently manages about $590 billion in assets.
The deal will expand Nomura’s global capabilities and footprint, increasing total AUM for Nomura’s investment management franchise to about $770 billion, with more than 35% managed on behalf of clients outside its home market of Japan. It will also give Nomura a Philadelphia-based “scaled hub” to further grow its international business, the release said.
Shawn Lytle, president of Macquarie Funds and head of Americas for Macquarie Group; John Pickard, CIO equities and multiasset; Greg Gizzi, CIO fixed income; and Milissa Hutchinson, head of U.S. wealth, will continue to manage the business following the acquisition.
Nomura has plans to support organic growth, increase AUM and diversify the businesses' capabilities post-acquisition, the release added, and will work with the Macquarie management team.
Plans include to develop new investment capabilities, to scale Macquarie’s active ETF platform that it established in 2023, to invest in talent and data analytics to grow the distribution platform and to leverage existing distribution channels to provide institutional and retail clients with access to Nomura’s 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, in the release. "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."
The deal also includes an agreement to collaborate on product and distribution opportunities, with Nomura becoming a U.S. wealth distribution partner for Macquarie Asset Management and giving access to alternative investment capabilities. Nomura will also provide seed capital for Macquarie Asset Management alternative strategies that are tailored for U.S. wealth clients.
The two companies will establish a joint working growth to explore additional potential opportunities to create value.
Macquarie’s U.S. and European public asset management business was formed through the acquisition of Delaware Investments in 2010. Further acquisitions, including of Waddell & Reed in 2021, added to its actively managed, long-term and open-ended U.S. mutual fund manager capabilities and expanded the U.S. client base.
The relevant U.S. and Europe public asset management Macquarie businesses have offices in Philadelphia, Kansas City, Vienna and Luxembourg. Its business is consists of about 50% equities, 40% fixed income and 10% multiasset, and is comprised of 50% retail, 35% insurance and the remainder institutional business. By region, the firm’s AUM is 90% U.S. and the remainder international.
Macquarie Asset Management has a total A$916.8 billion ($576.4 billion) in assets under management. It retains the public investments business in the home market of Australia, and will be a more focused alternatives business for institutional, insurance and wealth elsewhere in the world, Macquarie said in a separate news release.
"We are proud of the public investments business we have built and grown over many decades," Ben Way, head of MAM, said in the release. "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."
