Nomura to invest in European distressed assets

The Japanese financial services giant is raising four funds for investing in distressed assets in Western Europe.

Nomura Investment Adviser, the alternative investment arm of the Nomura Group, is raising €1.3 billion ($2 billion) for investing in European distressed assets.

The Japanese bank is fundraising for Nomura European Mezzanine Fund II, targeting up to €500 million; and Nomura European Senior Fund, a €400 million to €500 million fund to invest in senior collateralised loans.

The two funds are expected to close by September or October this year, a company spokesman told PEO.

He said that the firm is also in the process of setting up two country specific funds targeting distressed assets. The Spanish Special Situations Fund and the French Special Situations Fund will buy distressed companies in the two countries. The two funds are looking to raise €150 million each. Fundraising for these will start next year, he said.

Nomura will commit about 25 percent of the total capital to be raised, while the rest will be raised from pension funds, banks and other institutional investors. The spokesman said that of the remaining 75 percent, one third of the funds are likely to be raised from Japanese investors, another third from Europe and the remainder from the Middle East.

With the launch of the four funds, Nomura Investment Adviser will be managing total assets of about €2.1 billion for investing in European distressed assets. Its other funds include the Nomura European Mezzanine Fund I which closed in April 2007 with a fund capacity of €350 million, including a senior debt facility of €175 million; and a $400 million fund investing in insurance companies that closed in July 2007.

The funds are headed by Santiago Corral, co-head of Nomura Investment Adviser.