Nomura's acquisition of Macquarie businesses includes KC-area assets
A Japanese company will buy assets including the former Waddell & Reed operation in Kansas City and the mutual funds that incorporated Ivy Funds.
Nomura reached an agreement to acquire three asset management companies and a group of mutual funds from Macquarie, including the former Waddell & Reed operation in Overland Park and what was Ivy Funds.
Macquarie acquired Waddell & Reed for $1.7 billion on April 30, 2021. It consolidated the operation into an office at 6301 Glenwood St. in Overland Park, providing space for about 300 people.
Now, Nomura is buying Macquarie's entire U.S. and European public asset management business for $1.8 billion in cash. The acquisition includes about $180 billion in retail and institutional client assets and is expected to close by the end of the year.
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Tokyo, Japan-based Nomura already has a connection to the Kansas City area through its 2016 acquisition of a non-controlling, 41% economic interest in Kansas City-based American Century Investments. Nomura has more than 27,000 employees in 30 countries around the globe.
The acquisition of the Macquarie assets significantly expands the global capabilities of Nomura's Investment Management Division, which manages about $590 billion in client assets. After completion of the acquisition of Macquarie's business, Nomura will have about $770 million of assets under management, with more than 35% managed for clients outside of Japan.
'The acquisition will align with our 2030 global growth and diversification ambitions to invest in stable, high margin businesses,' Nomura President and Group CEO Kentaro Okuda said in a release. 'It will be transformational for our Investment Management Division's presence outside of Japan, adding significant scale in the U.S., strengthening our platform and providing opportunities to build our public and private capabilities. We are delighted with the prospect of welcoming all 700-plus employees that will be joining the Nomura Group.
The deal includes an agreement to collaborate on product and distribution opportunities, including Nomura being a U.S. wealth distribution partner for Macquarie Asset Management and providing continued access for U.S. clients to Macquarie's alternative investment capabilities. Nomura also committed to providing seed capital for a range of Macquarie's alternative funds tailored for U.S. clients.
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