Macquarie AM $2.8b sale of US and Euro business to Nomura

Macquarie Asset Management has sent a clear message with its decision to sell its North American and European public asset management business to big Japanese investment bank Nomura in a transaction worth $2.8 billion.

The deal is being seen by analysts as a product of both strategy and timing in the context of Macquarie in February announcing it would be closing its debt capital markets division in the US and would be focusing on its private credit business.

Macquarie will be retaining its investment management business in Australia and said that it would collaborate with Nomura on product and distribution.

In a statement conforming the transaction with Nomura, Macquarie Asset Management head, Ben Way, acknowledged that it would allow the firm to build a “leading global position in private markets, as we focus on providing solutions to our institutional, insurance and wealth clients”.

Normura president and group chief executive, Kentaro Okuda said in a statement that the transaction would be transformational for his firm’s investment management division outside of Japan, adding significant scale in the US.

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 (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 noted that the existing Macquarie team would continue to run the business following the acquisition.

“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),” Nomura’s announcement said. “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.”

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 organisations.