Macquarie divests North America, Europe asset management units to Nomura

Macquarie Asset Management (MAM) will sell its North American and European public investments business that comprise equities, fixed income, and multi-asset offerings to Nomura for $2.8 billion.

The business, which is based in Philadelphia, has about $285 billion in assets under management (AUM). Nomura will acquire the business in its entirety, including all assets, teams, offices and operating platform. There are about 700 employees affected.

About 50% of the business comes from equities, 40% from fixed income and 10% is multi-asset. Nomura will acquire 100% of the stock in the three companies for an all-cash purchase transaction. Half the investors are retail, 35% are from the insurance channel and the remaining 15% are institutional.

MAM said it will retain its public investments business in its home market of Australia where it will continue to operate and invest in a full-service asset management business across public and private markets and that the two firms will collaborate on product and distribution opportunities to serve their respective clients more effectively.

The product and distribution opportunities will include Nomura being a US wealth distribution partner for MAM, providing continued access for US wealth clients to MAM's alternative investment capabilities. Additionally, Nomura has committed to providing seed capital for a range of MAM alternative funds tailored for US wealth clients.

MAM entered the US and European public asset management business via the acquisition of Delaware Investments in 2010, a US mutual funds business established in 1929. It then acquired Waddell & Reed in 2021, adding to its actively managed, long-term, open-ended US mutual fund manager capabilities.

The head of MAM Ben Way said: "We are proud of the public investments business we have built and grown over many decades. 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."

"This transaction will allow MAM to build on our leading global position in private markets, and our leading position in Australian public markets, as we focus on providing solutions for our institutional, insurance and wealth clients."

Nomura president and group chief executive Kentaro Okuda said the acquisition aligns "with our 2030 global growth and diversification ambitions to invest in stable, high-margin businesses."

"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.

The US and Europe business is currently led by Shawn Lytle, the head of Americas for Macquarie Group. He is joined by John Pickard, chief investment officer for equities and multi-asset, Greg Gizzi, chief investment officer of fixed income, and Milissa Hutchinson, the head of US wealth.

The transaction is set to finalise by the end of 2025, subject to customary closing conditions and regulatory approvals.