Macquarie shares rise on $2.8b Nomura deal
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More news: Macquarie Group shares advanced after the financial group announced the sale of its North American and European public investments business to Japanese investment bank and brokerage group Nomura.
Macquarie shares were up 1.9% to $183.31 at 4:30pm AEST but have lost more than 15% since the turn of the year.
UBS analyst John Storey said the impact of the deal on Macquarie's earnings is likely to be immaterial at around 2% and will be recognised in the fourth quarter of fiscal 2026.
Storey noted that Macquarie's annuity-style businesses Macquarie Asset Management (MAM) will become a more focused and leading global business in private market alternatives as a result of the transaction.
What they said: "Today's announcement highlights the challenges which active managers are facing, as the industry continues to consolidate," said Storey. "Strategically, we think this transaction makes sense, given the business has operationally struggled but is disappointing given the time and resources committed to building out this business."
Macquarie sells US, European funds unit to Nomura for $2.8b
The news: Macquarie Asset Management will sell its North American and European public investments business to Nomura for approximately $2.8 billion in an all-cash transaction, the company said.
Macquarie will retain its public investments business in Australia, where it will continue to operate a full-service asset management business across public and private markets.
The numbers: The business includes equities, fixed income and multi-asset strategies, with approximately $285 billion of assets under management and more than 700 employees.
Nomura will acquire the business in its entirety, including all relevant assets, teams, offices and operating platform.
What they said: The transaction is expected to close by the end of the year and is subject to regulatory approvals and customary closing conditions.
It will leave Macquarie Asset Management focused on global alternatives and a full-service asset management business in Australia, the company said.
Macquarie and Nomura will also collaborate on product and distribution opportunities, including seed capital from Nomura for a range of Macquarie Alternative funds aimed at US wealth clients, it added.
“We are pleased that Nomura will carry it forward into a new phase of growth in North America and Europe,” Ben Way, head of MAM, said in a statement
“We are also excited to further strengthen our collaboration with Nomura, creating benefits for our respective clients.“
The sources: Macquarie statement, UBS research
