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Nomura Targets $45 B in Private-Debt AUM by 2027

  //business-finance.news-articles.net/content/202 .. ra-targets-45-b-in-private-debt-aum-by-2027.html
  Published in Business and Finance on Sunday, December 14th 2025 at 19:25 GMT by socastsrm.com
      Locale: Tokyo, JAPAN

Nomura’s Bold Push into Private Debt: A Strategic Shift Toward Alternatives

In a move that signals a broader industry pivot toward alternative investments, Nomura Holdings has announced a targeted expansion of its private‑debt portfolio, according to a recent interview with the bank’s chief executive officer (CEO). The strategy, outlined in a December 2025 article on the company’s own website, frames private debt as a core pillar of Nomura’s future growth, positioning the Japanese broker‑dealer to capitalize on the persistent demand for higher‑yield, non‑public‑market opportunities.

Why Private Debt?

The CEO, whose name is disclosed in the article as Masashi Sugiura, underscored that the global investment landscape has been reshaping itself over the past decade. Institutional investors—particularly pension funds, insurance companies, and sovereign wealth funds—have been seeking yield in a low‑interest‑rate environment, and private debt has emerged as a proven source of attractive risk‑adjusted returns. In 2023, the global private‑debt market expanded to roughly $520 billion in new capital deployments, according to a data source linked in the piece. Nomura aims to capture a significant slice of this growth by deepening its engagement with fund managers, co‑investing in deals, and developing proprietary lending platforms.

Sugiura explained that private debt offers several benefits: direct access to middle‑market borrowers, a more diversified risk profile, and the opportunity to earn higher fees than public‑market fixed‑income products. By embedding private debt in its alternative‑investment suite, Nomura intends to differentiate itself from its peers—particularly the likes of JPMorgan, Goldman Sachs, and Morgan Stanley—which have already ramped up private‑debt capacities.

The Expansion Plan

Nomura’s strategy is multi‑layered:

1. In‑house Deal Sourcing and Origination
   The bank plans to create a dedicated private‑debt team focused on origination, underwriting, and relationship management. Sugiura revealed that the team will work closely with its research division to identify promising middle‑market borrowers across Asia, the U.S., and Europe. The goal is to achieve an AUM (Assets Under Management) target of $45 billion in private debt by 2027, up from the current $15 billion.

2. Strategic Partnerships
   The article cites a planned partnership with Harris Associates, a global alternative‑investment firm known for its private‑debt expertise. The partnership would allow Nomura to co‑invest in high‑quality debt facilities, thereby expanding its reach without diluting control. The piece also notes a pending collaboration with Blackstone’s Credit Group, which could open avenues for larger, leveraged‑loan transactions.

3. Technology‑Driven Platforms
   Leveraging the bank’s fintech infrastructure, Nomura intends to develop an online debt marketplace that would streamline due diligence, risk analytics, and compliance monitoring. This platform, according to the article, will be built on artificial‑intelligence‑driven algorithms that sift through millions of data points to surface the most attractive loan opportunities.

4. Fee Structure and Incentives
   To attract both investors and borrowers, Nomura will adopt a tiered fee structure: a base management fee of 1.5% for core funds and an upside‑share component that increases with superior performance. Sugiura emphasized that aligning fees with outcomes will bolster investor confidence and incentivize the bank’s partners to pursue high‑quality deals.

Market Context and Competitive Landscape

The piece includes a comparative analysis of how Nomura’s private‑debt ambitions stack up against other major players. The article’s link to a Bloomberg piece on JPMorgan’s private‑debt growth illustrates that the U.S. giant’s private‑debt AUM rose to $200 billion in 2024. By contrast, Nomura’s current private‑debt portfolio is comparatively modest but poised for rapid expansion.

Furthermore, the article references a survey by Preqin that highlights institutional investors’ increasing preference for “direct lending” versus traditional bank lending. Nomura’s CEO uses this data to justify the strategic shift, noting that direct lending offers borrowers more flexible terms and investors a higher return cushion against market volatility.

Regulatory and Risk Considerations

With expansion comes heightened scrutiny. The article acknowledges that Nomura must navigate a complex regulatory framework, particularly under Japan’s Financial Services Agency (FSA) and the U.S. Securities and Exchange Commission (SEC). Sugiura noted that the bank’s private‑debt arm will adhere to stricter capital‑adequacy requirements, ensuring that leverage ratios remain within permissible limits.

Risk management is also a focal point. The article details the bank’s plan to employ a “Risk‑Weighted Asset (RWA)” model that incorporates credit spread volatility, borrower covenant strength, and macro‑economic stress testing. By combining quantitative models with qualitative oversight from senior credit committees, Nomura aims to mitigate potential defaults that could undermine the growth trajectory.

Investor and Stakeholder Reactions

Following the announcement, Nomura’s share price experienced a modest uptick of 2.5% on the day, as noted in a link to the Tokyo Stock Exchange’s daily summaries. Analysts, however, expressed mixed sentiments. While many praised the strategic foresight, some cautioned that the private‑debt market remains cyclical and could see a slowdown if global growth falters. Sugiura addressed these concerns by pointing out the diversified nature of Nomura’s private‑debt deals—spanning across sectors such as technology, healthcare, and renewable energy—thereby reducing concentration risk.

Looking Ahead

In closing, the article highlights Nomura’s broader commitment to “alternative investments as a new growth engine.” The CEO stressed that the bank will not only increase its private‑debt holdings but also broaden its alternative offerings to include hedge funds, real estate, and infrastructure. By aligning its corporate strategy with investor demand for higher yields and diversifying beyond traditional equity and fixed‑income products, Nomura seeks to cement its status as a leading alternative‑investment platform in Asia and beyond.

The next milestones include the launch of the online debt marketplace by Q2 2026 and the formalization of the Harris Associates partnership by year‑end 2025. If successful, Nomura’s private‑debt push could reshape the competitive landscape, prompting rivals to recalibrate their own alternative‑investment portfolios in the years ahead.