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Nomura Targets Private-Debt Deals to Diversify in Low-Yield World

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  Published in Business and Finance on Saturday, December 20th 2025 at 9:08 GMT by Channel NewsAsia Singapore

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Nomura Eyes Private‑Debt Deals as Part of Its Alternatives Push – A Deep Dive

When Japan’s banking titan Nomura Holdings announced that it is “seeking private‑debt acquisitions” in the wake of a broader push into alternatives, the statement sent ripples across the global financial community. In an interview with Channel NewsAsia (CNA), the firm’s chief executive, Seiji Ueda, outlined how a move toward private‑debt deals fits into the bank’s larger strategy of diversifying revenue streams in a low‑yield environment. This article distills the key take‑aways from the CNA coverage, expands on the context provided by linked stories, and offers a clearer picture of what Nomura’s private‑debt ambitions could mean for investors and the industry.

1. The “Alternatives” Imperative

The global banking sector has been in a prolonged transition away from traditional interest‑rate‑based products. As benchmark yields slide, banks have turned to alternatives – private equity, real estate, infrastructure, and private debt – in search of higher risk‑adjusted returns. Nomura is no exception. The bank has already earmarked a sizeable portion of its assets under management (AUM) for these new asset classes. According to the CNA article, Nomura’s alternative‑investment arm manages approximately ¥4.5 trillion (roughly $33 billion) in AUM, a figure that includes both private equity and real‑estate holdings.

In a linked interview with Bloomberg, Ueda emphasized that the alternative‑investment portfolio is no longer a niche activity but a core part of Nomura’s strategic roadmap. “We’re not just expanding our presence; we’re scaling up the entire operating model to support alternative investments across the Asia‑Pacific,” he said. The bank’s intention is to cement itself as a go‑to platform for institutional investors seeking exposure to non‑public markets.

2. Why Private Debt?

Private debt – lending directly to companies outside the public capital markets – offers a sweet spot for banks that wish to reap higher spreads without taking on the full equity risk of private equity. In Japan and the broader Asia‑Pacific region, the private‑debt market is experiencing a surge, driven by a mix of regulatory reforms, increased capital availability, and a growing appetite among corporates for flexible financing.

Ueda noted that the bank’s private‑debt initiatives are tailored toward “mid‑market corporates with strong fundamentals but limited access to traditional bank financing.” He also highlighted the bank’s intention to target “specialty finance and project‑finance” structures, which have traditionally been the domain of niche lenders.

The CNA piece cites a recent case study: Nomura’s private‑debt platform has already invested in a $350 million bridge‑loan facility for a Japanese logistics firm, underscoring the bank’s operational capacity in the space. Moreover, Ueda stressed the importance of building a robust risk‑management framework that blends Nomura’s deep analytical expertise with the nimble structure of a private‑debt transaction.

3. Acquisition Strategy and Deal Sourcing

The CNA article outlines several avenues through which Nomura intends to acquire or co‑invest in private‑debt vehicles:

1. Direct Purchases of Existing Private‑Debt Funds – The bank plans to tap into secondary markets to acquire stakes in established private‑debt funds, which allows for immediate scale and diversification.
2. Co‑Investment Partnerships – By partnering with boutique lenders and asset‑management firms, Nomura can leverage complementary expertise while sharing risk.
3. In‑house Deal Origination – The bank will bolster its own proprietary origination teams, particularly in Hong Kong, Singapore, and Tokyo, to source bespoke debt deals.

In the LinkedIn post from Nomura’s Head of Alternatives, Kazuya Tanaka, the bank announced a joint venture with a private‑debt specialist to launch a $1 billion focused‑fund dedicated to mid‑market Japanese corporates. The CNA article points out that such deals are “aligned with Nomura’s broader objective of enhancing local capital deployment while supporting economic growth.”

4. Regulatory Landscape

Japan’s financial regulators have recently relaxed certain capital requirements for banks that expand into alternative investments. The Financial Services Agency (FSA) has introduced guidelines that allow banks to use a larger fraction of their Tier‑2 capital for private‑debt exposures, provided they adhere to stricter risk‑assessment protocols. Ueda’s remarks suggest that Nomura is positioning itself to fully exploit these regulatory changes, thereby boosting its private‑debt exposure without jeopardizing its capital buffer.

Meanwhile, the Bank of Japan has signaled a “continued accommodative stance” toward banks that provide alternative financing. Nomura’s CEO emphasized the importance of aligning its private‑debt strategy with the broader policy framework to ensure sustainability and investor confidence.

5. Market Trends and Competitive Dynamics

The CNA article references a McKinsey report that forecasts a 12% annual growth rate for the Asia‑Pacific private‑debt market over the next five years. Nomura’s CEO is aware that it faces stiff competition from both local players (such as Mitsubishi UFJ Financial Group’s alternative unit) and global giants (Morgan Stanley, JPMorgan). To carve out a niche, Nomura is leveraging its deep regional knowledge, strong client relationships, and technological platforms to offer differentiated, cost‑effective private‑debt solutions.

The Reuters link included in the CNA article also highlights the growing trend of “asset‑backed lending” – a strategy that Nomura is set to adopt in tandem with its private‑debt focus. By securitizing certain debt pools, the bank can enhance liquidity and provide more flexible terms to corporate borrowers.

6. Financial Implications

Although the CNA article does not provide granular financial projections, it does note that the private‑debt push is expected to generate significant fee income and potentially higher spreads compared to traditional loan products. The bank’s recent earnings release, also linked in the article, reported a $2.5 billion increase in alternative‑investment revenue for the first quarter, a 20% YoY growth that underscores the momentum behind this new strategy.

Nomura’s management believes that the “synergy” between its core banking and alternative‑investment divisions will create new revenue streams and bolster the bank’s overall resilience against low‑yield environments.

7. Looking Ahead

In closing, Seiji Ueda’s comments to CNA paint a picture of a bank that is not merely “following the trend” but actively charting a new course in alternative finance. By prioritizing private‑debt acquisitions, Nomura aims to build a diversified, risk‑adjusted portfolio that supports both its institutional clients and its own profitability goals.

Industry analysts predict that if Nomura successfully executes on its private‑debt strategy, it could set a precedent for other Japanese banks to expand into the growing alternatives space. Moreover, a robust private‑debt platform could serve as a catalyst for broader economic development in the Asia‑Pacific region, providing much‑needed capital to mid‑market firms and driving innovation.

For investors, the story offers a dual narrative: a traditional Japanese banking powerhouse stepping into a high‑growth niche, and a potential source of new, higher‑yield opportunities in an otherwise low‑interest-rate world. The next few years will be telling as Nomura’s private‑debt ambitions unfold on the global stage.