Nomura Holdings Expands in Private Debt: Strategic Acquisitions and Partnerships

Nomura Holdings Inc., Japan's largest investment bank, is actively pursuing acquisitions in the private debt asset management sector to bolster its alternative assets business. CEO Kentaro Okuda announced this strategic initiative on December 14, 2025, emphasizing the firm's commitment to leveraging global expertise to develop Japan's nascent direct lending market amid rising interest rates.

"In the private debt unit of our asset management business, we are looking to make an investment or acquisition if the opportunity arises, also to bring knowledge in," Okuda stated. He highlighted that increasing interest rates present new opportunities in private debt and mezzanine financing, indicating strong long-term domestic potential.

Nomura aims to expand its alternative assets under management from 2.9 trillion yen in 2025 to 10 trillion yen by 2031. The firm is open to outright acquisitions or augmenting its existing assets, such as those from its recent $1.8 billion purchase of Macquarie Group's U.S. and European public asset management units. This acquisition, completed in December 2025, added approximately $180 billion in client assets across equities, fixed income, and multi-asset strategies, increasing Nomura's total assets under management to around $770 billion.

Additionally, Nomura has formed a strategic alliance with Park Square, a British private debt manager, investing $150 million into a U.S. private credit fund. This partnership aligns with Nomura's broader strategy to harness expertise from mature global markets to foster Japan's emerging direct lending industry.

The global private debt market has experienced significant growth, estimated at $3 trillion as of early 2025, up from $2 trillion in 2020. Nomura's strategic focus on private debt acquisitions aligns with this trend and reflects a broader industry shift towards alternative assets. By expanding its presence in the private debt market, Nomura aims to diversify its revenue streams and reduce reliance on traditional asset classes.

Nomura's expansion into private debt and alternative assets could have several societal and economic impacts:

• Economic Growth: By facilitating direct lending, Nomura can provide capital to small and medium-sized enterprises (SMEs) in Japan, potentially stimulating economic growth and job creation.

• Financial Market Development: Introducing expertise from mature markets may accelerate the development of Japan's private debt market, offering investors new opportunities and enhancing the overall financial ecosystem.

• Risk Diversification: For investors, increased access to alternative assets can provide diversification benefits, potentially leading to more stable returns.

Nomura's current expansion strategy is reminiscent of its 2008 acquisition of Lehman Brothers' assets, which faced challenges and led to significant write-downs. However, the current approach appears more measured, focusing on integrating established businesses with existing management teams and leveraging strategic alliances.

Nomura Holdings' strategic focus on acquiring private debt asset management firms underscores its commitment to expanding its alternative assets business. By leveraging global expertise and forming strategic alliances, Nomura aims to play a pivotal role in developing Japan's direct lending sector, positioning itself as a leader in the evolving financial landscape.