top of the rock
in a surprising turn of events that calls to mind a litany of foolish japanese acquisitions overseas, nomura is taking down 15% of fortress for $888mm (or a $5.9b valuation). the number 8 is auspicious to the japanese, and one can’t help but wonder how much its use actually cost. or who actually foots the bill for that matter; after all, the implied valuation is lower than the $7.5b originally contemplated for an IPO.
is this a strategic move aimed at bolstering the asset management franchise?
bloomberg experts think so:
“I can understand the logic, especially after the investment in Instinet,” said Elizabeth Rudman, a Tokyo-based credit analyst at Moody’s Investors Service. “Japanese financial firms have had difficulties managing overseas investments in the past. It will be important for Nomura to demonstrate that they can generate substantial returns.”
and what better way is there to demonstrate investing competency than acquiring minority stakes in non-transparent, private companies?
of course, an IPO may still be coming. so perhaps we all miss the point, and this is actually intended to be nomura’s ICBC…
when in doubt, i defer to the experts:
Taking a stake in Fortress gives the firm a foothold to win more business servicing hedge funds and buyout firms on a worldwide basis, says Angus McKinnon, a Tokyo-based senior partner at Trident Pacific Capital, which manages $65 million of Japanese equities.
clearly a size player who knows what he’s talking about.