mergers & acquisitions

Nomura Acquires Macquarie’s US and European Public Asset Management Business

Norbert Gehrke

Norbert Gehrke

— 3 min read
Nomura Acquires Macquarie’s US and European Public Asset Management Business

Nomura and Macquarie have entered into an agreement for Nomura to acquire Macquarie’s U.S. and European public asset management business, with approximately US$180 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% of the stock of three companies that operate Macquarie's U.S. and European public asset management business for an all-cash purchase price of US$1.8 billion. The transaction is targeted to close by the end of the calendar year, subject to customary closing conditions and regulatory approvals.

Nomura has 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 US$590 billion in client assets. 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.

Macquarie established its U.S. and European public asset management business through the acquisition of Delaware Investments in 2010, a U.S. mutual funds business established in 1929. The public asset management business has grown organically and through select acquisitions, including the acquisition of Waddell & Reed in 2021, adding to its actively managed, long-term, open-ended U.S. mutual fund manager capabilities and expanding its U.S. client base. In 2023, the business launched active ETFs and currently manages more than a dozen ETF strategies in the U.S. With more than 700 employees led from Philadelphia, the business has a strong client franchise across U.S. intermediary and institutional clients.

The business is currently managed by a highly experienced team, which 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
"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," said Kentaro Okuda, Nomura President and Group CEO. "We are delighted with the prospect of welcoming all 700-plus employees that will be joining the Nomura Group."

As part of the transaction, Nomura and Macquarie have agreed to collaborate on product and distribution opportunities, including Nomura being a U.S. wealth distribution partner for Macquarie Asset Management and providing continued access for U.S. 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 U.S. 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.

Read more