Nomura to Expand Investment Business Areas with a New Business Alliance

Nomura Holdings, Inc. (Nomura) and Nomura Real Estate Holdings, Inc. (Nomura Real Estate) today announced that they have signed a memorandum of understanding to begin discussions on forming a business alliance to establish a real asset fund management company.

The MOU sets out the fundamental principles and other necessary considerations for entering into the alliance. Execution of the alliance is subject to regulatory approval and respective company-related approvals. Following discussions on the operational structure and evaluation of the impact of the alliance, the two companies plan to execute a final agreement in July 2022.

Purpose of the Alliance

Leveraging their expertise and investor networks, the two companies plan to jointly establish a new real asset fund management company with a view to expanding into new investment business areas and growing their real asset fund business mainly in the private domain.

Through the new company, Nomura is looking to expand its real asset business and increase sourcing opportunities as it strengthens its commitment to private markets. In addition, Nomura Real Estate aims to further evolve its real asset fund business by taking advantage of Nomura’s strong client network and access to institutional and individual investors in Japan and overseas. By providing corporate clients with CRE (Corporate Real Estate) proposals, Nomura Real Estate also expects to see increased business opportunities across new asset classes.

Overview of New Company

The two companies plan to establish an asset management company to operate a real asset fund business. Nomura and Nomura Real Estate will be shareholders of the new company, with Nomura expected to be the majority shareholder. Details regarding the shareholding to be held by each company will be determined before the final agreement.

Future Outlook

The two companies do not expect the planned alliance to have a material impact on their consolidated financial results at this stage. The two companies will immediately issue an announcement if the possibility of a material impact arises in the future.