In line with Japanese brokerage firm Nomura Holdings' strategy to expand further into Asia, the company is to purchase a minority stake in asset manager Fortress Investment Group for $888 million, and establish an asset management office in Malaysia.
Under the terms of the purchase agreement, Nomura will own Class A shares representing 15% of Fortress, with proceeds going to the Fortress principals. This transaction, combined with plans to establish new offices in Malaysia, is expected to facilitate the expansion of Fortress’ business in Asia.
Nomura Asset Management (NAM), a division of Nomura Holdings, is to open a new office, namely Nomura Asset Management Malaysia (NAM KL), in Malaysia’s capital, Kuala Lumpur.
NAM KL is one of the first foreign financial institutions to obtain a fund manager license from the securities commission of Malaysia.
NAM is the largest asset management company in Japan, with approximately JPY22 trillion in assets under management as at September 30, 2006. The company has been committed to strengthening its Asian operations through investment management in Asia-Pacific. The establishment of NAM KL is a further step towards enhancing its Asian equities investment management capabilities.