Japan's Nomura, Norinchukin Bank to team up in private equity investment |
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Wed, 12 Sep 2007 10:07
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TOKYO (Thomson Financial) - Japanese securities brokerage group Nomura Holdings Inc said Wednesday it, Norinchukin Bank and the Development Bank of Japan will jointly launch a pension fund management firm that will specialize in private equity investments, confirming an earlier report in the Nikkei business daily.Nomura and the quasi-government financial institution for agricultural, forestry and fishery cooperatives will establish the venture in January 2008.Nomura will hold a 65 percent stake in the venture, to be capitalized at 2.0 billion yen, while Norinchukin will take a 30 percent stake and the Development Bank of Japan will hold the balance of 5 percent.The new company will examine the performance and strategies of private equity funds across the globe and select promising funds.Nomura said the venture aims to launch two such funds in the first two years, with a goal of 300 billion yen under management in five years.But Japan's largest brokerage group said real estate-oriented funds and hedge funds, which do not invest in private equity business, will be excluded as potential investment targets.The venture will seek annual returns of 20-25 percent over a period of 10 years, according to Nomura.Nomura, which invested about 100 billion yen in US hedge fund Fortress Investment Group LLC last December, has connections with many funds worldwide, while Norinchukin Bank has invested in US and European buyout funds since 1998, according to the Nikkei.(1 US dollar = 114.13 yen)Yasuhiko.Seki@thomson.comyas/zrCOPYRIGHTCopyright AFX News Limited 2007. All rights reserved.The copying, republication or redistribution of AFX News Content, including by framing or similar means, is expressly prohibited without the prior written consent of AFX News.
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Japan's Nomura, Norinchukin Bank to team up in pension fund management - report 