Macquarie Asset Management (MAM) is to sell its North American and European public investment business to Nomura for some $2.8 billion in an all-cash transaction.
The asset manager on Tuesday confirmed it had entered into an agreement with the financial services group to acquire the business in its entirety. This includes all relevant assets, teams, offices and its operating platform.
Macquarie’s public investments business comprises equities, fixed income and multi-asset strategies, with around $285 billion in assets under management. The business, which is led from Philadelphia, has more than 700 employees.
Notably, MAM’s Australian public investments business was spared from the sale, with the financial giant confirming it would continue to operate and invest in a “full-service asset management business across public and private markets” locally.
“We are proud of the public investments business we have built and grown over many decades,” Ben Way, head of MAM, said.
“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,” Way added.
According to him, the transaction will also allow the asset manager to build on its “leading global position in private markets”, as well as its position in Australian public markets, as it continues to serve its institutional, insurance and wealth clients.
Macquarie also clarified that the transaction will see MAM and Nomura collaborate on product and distribution opportunities. This includes Nomura being a US wealth distribution partner for MAM.
Moreover, Nomura has committed to providing seed capital for a range of MAM alternative funds tailored for US wealth clients, building on the partnership after jointly launching the Nomura Macquarie Private Infrastructure Fund in Japan earlier this year.
“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,” the asset manager said on Tuesday.
The transaction is subject to regulatory approvals and customary closing conditions. It’s expected to close by the end of 2025.
“This acquisition will align with our 2030 global growth and diversification ambitions to invest in stable, high margin businesses,” Kentaro Okuda, Nomura president and group CEO, said in a separate statement.
“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,” Okuda said.
