Hedge Fund Reader : Nomura Seeks Larger Share of Global Pie

December 20, 2006

Nomura Seeks Larger Share of Global Pie

-- By Pushpa Sathish, Staff Writer

As part of its global expansion plan, Nomura Holdings has acquired 15 percent of the US hedge fund and private equity manager, the Fortress Investment Group, for the princely sum of $888 million. With this sale, Fortress has been offered an entry into the Asian fund market, and can ride on Nomura’s shoulders to offer its products in the world’s largest continent.

The biggest securities firm in Japan is consolidating its attempts to catch up with other global players such as Goldman Sachs and Morgan Stanley, as seen by the move to buy the American electronic brokerage firm Instinet last month. The purchase offered Nomura access to 700 hedge fund clients. But is the Japanese firm paying too high a price as it seeks to compete with bigger fish than itself, as rumors in the industry suggest? NY Times reports:

Still, Nomura may be overpaying as it seeks to match the profitability of Wall Street giants like Goldman and Morgan Stanley. Nomura’s stake in Fortress comes at a higher price, compared with assets, than the $300 million Morgan Stanley paid in October for a 19 percent stake in Lansdowne Partners, a London hedge fund with $12 billion in assets.

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December 20, 2006 in Emerging Markets | Permalink