Nomura Holdings, Norinchukin Bank and Development Bank of Japan, three Japanese financial institutions have agreed to launch a joint venture to evaluate and analyse private equity funds. It will also offer investment advisory and discretionary management services.
Private Equity Funds Research and Investments aims to manage ¥300 billion ($2.6 billion; €1.9 billion) of third party funds in five years, Michiyori Fujiwara, a spokesman for Nomura told PEO.
Set for launch in January, the joint venture is looking for commitments from corporate pension funds, regional banks and trusts companies as well as high net worth individuals, Fujiwara said.
He named The Carlyle Group and Kohlberg Kravis & Roberts as the type of buyout funds the new investment unit will look to back. In addition to buyout, the group will invest in mid-market private equity, venture capital, mezzanine and patent funds but not hedge or real estate funds, he added.
Norinchukin, a bank formed by one of Japan’s largest industry cooperatives – agricultural and fishery – will also be allocating money into the fund, Fujiwara added. Hailed one of the more active Japanese institutional investor in private equity, Norinchukin has been investing in the alternative asset class since 1998.
Nomura will hold a majority stake of 65 percent in the venture which has been capitalized at ¥2 billion, while Norinchukin and Development Bank of Japan will have 30 percent and 5 percent respectively.
The new venture, expected to be staffed by 15 professionals seconded from Nomura, is likely to be staffed by 20 to 30 people over time.