Nomura Buys Macquarie’s US and Europe Investment Business

Japanese investment bank Nomura on Tuesday said that it will acquire Australian multinational investment banking and financial services group Macquarie Group’s US and European public asset management business, which claims $180 billion assets under management (AUM) in retail and institutional assets, for an all-cash purchase price $1.8 billion.

Under the terms of the agreement, Nomura will acquire 100% of the stock of three companies (the Target Companies) that operate Macquarie’s US and European public asset management business 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 has identified global asset management as a key strategic growth priority for the organisation.

Through this transaction, Nomura will significantly expand the global capabilities and client footprint of its Investment Management Division, which currently manages approximately $590 billion in client assets.

Upon completion, the total assets under management of Nomura’s Investment Management franchise are expected to increase to around $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 US as well as strong institutional relationships, including within US 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. 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.

Align with Nomura’s Plans

Kentaro Okuda, Nomura President and Group CEO, said that this acquisition will align with Nomura’s 2030 global growth and diversification ambitions to invest in stable, high margin businesses.

He said that the deal will be transformational for their Investment Management Division’s presence outside of Japan, adding significant scale in the US, strengthening the company’s platform, and providing opportunities to build public and private capabilities.

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 the 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 the US 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.

Macquarie’s US and European Business

Macquarie established its US and European public asset management business through the acquisition of Delaware Investments in 2010, a US 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 US mutual fund manager capabilities and expanding its US client base.

In 2023, the business launched active ETFs and currently manages more than a dozen ETF strategies in the US.