Nomura seeking private debt acquisitions in alternatives push, CEO says

Despite the explosive growth of such financing in the US over the past decade, bank loans still dominate corporate borrowing in Japan

Japan’s Nomura Holdings is on the lookout for private debt asset management acquisitions as it expands its alternative assets business, chief executive Kentaro Okuda said.

Nomura also hopes to bring know-how from more mature overseas markets to the fledgling direct lending industry in Japan, where demand is expected to grow now that interest rates have finally begun to rise, Okuda said.

These aims mark the latest stage of Nomura’s drive to establish itself as a global financial player and reflect the gradual diversification of financing needs in Japan as the economy finally exits deflation.

The global private debt market was estimated at US$3 trillion as at early 2025 by Morgan Stanley, up from US$2 trillion in 2020.

“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 said.

The stable fee-based revenue generated by asset management has become a core growth area for Japanese financial institutions and is the site of Nomura’s largest-ever acquisition, the US$1.8 billion buyout of Macquarie’s US and European public asset management businesses earlier this year.

Alternative assets, which include private equity, private debt, real estate and infrastructure, have until now made up a small fraction of Japanese investors’ portfolios, compared to much larger allocations overseas.

Nomura is targeting alternative assets under management of 10 trillion yen by March 2031, up from 2.9 trillion yen at the end of September 2025.

It is actively looking at companies or teams with expertise in managing alternative assets and would consider an outright buyout as well as a bolt-on to Macquarie, Okuda said.

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Okuda also has hopes for the long-term prospects of direct lending in Japan, which refers to non-bank lenders making loans directly to companies.

Despite the explosive growth of such financing in the US over the past decade, bank loans still dominate corporate borrowing in Japan. But the end of ultra-low interest rates brings opportunities to expand in Japan.

“Rising interest rates widen credit spreads, so there’s an opportunity in private debt and mezzanine financing,” Okuda said.

In November, Nomura formed a strategic alliance with Britain-based private debt asset manager Park Square, investing US$150 million in a US private credit fund. REUTERS

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