Warburg, GIC back Japanese firm

Nikko Asset Management today announced an investment from Warburg Pincus and the Government of Singapore.

Global private equity firm Warburg Pincus and Singapore’s GIC Special Investments have agreed to buy a stake in Nikko Asset Management, a Japanese provider of fixed income and real estate investment trusts and advisory services.

The investment will give the two private equity firms 38 percent of the voting rights in Nikko through an investment vehicle they co-own with Nikko Principal Investments Japan, an investment subsidiary of Nikko Cordial Corporation.

A press release did not state the value of the transaction, but noted that external investors will now own a third of Nikko Asset Management’s equity.

Nikko Asset Management is led by Tim McCarthy.

Warburg Pincus managing director Tetsuya Fukagawa said: “We have always taken a long-term view in Japan. We believe Nikko AM is committed to a uniquely innovative structure that insures independence.”

In connection with the investment, Nikko Asset Management is launching a new stock option plan for key managers.

Nikko offers investors investment products through a network of 200 securities firms and banks. Its assets under management total roughly $65 billion.