Weekly highlights from the private equity sector's news cycle
In a significant move, Japanese investment bank Nomura has announced its intention to acquire Macquarie's US and European public asset management units for a staggering $1.8 billion in an all-cash deal. The transaction, expected to close by the end of 2025, is subject to regulatory approvals and is expected to be structured as a secondaries sale.
The deal, initiated in 2023, marks Nomura's largest international acquisition since the 2008 purchase of Lehman Brothers' Asian and European operations. The sale is being advised by Jefferies Financial Group, contrary to the ongoing negotiations at Harvard University.
Meanwhile, Harvard University is reportedly in talks to sell approximately $1 billion in private equity assets. The potential sale, driven by regulatory tax hikes, funding cuts, and the need to reduce illiquid assets in the endowment, could be part of a "fire sale" at roughly a 20% discount. However, the potential buyer remains undisclosed.
The negotiations at Harvard University involve strategic rationale to cope with increased regulatory risks and funding cuts while maintaining research funding and other financial obligations. The sale could contribute to a shrinkage in the endowment's value under current policy scenarios.
Interestingly, a new player in the private equity landscape, Unity Advisory, is set to launch by June with up to $300 million in backing from Warburg Pincus. Based in the UK, Unity Advisory is a boutique accounting and consulting firm, and while not a party to the Nomura-Macquarie deal, Lexington Partners, another private equity firm, is reportedly a potential buyer in the Harvard University deal.
Following the acquisition, Nomura's investment management platform will grow to $770 billion, and the deal will add approximately $180 billion in assets under management. It's an exciting time for both Nomura and Macquarie as they navigate these significant transactions.
[1] Harvard University Faces Financial Pressures: [Link] [2] Harvard's Endowment Struggles Under Regulatory Changes: [Link] [3] Harvard's Potential Fire Sale of Private Equity Assets: [Link]
- The $1 billion worth of private equity assets that Harvard University is considering selling could provide a significant fund for finance, should a buyer be found in the ongoing negotiations.
- The acquisition of Macquarie's US and European public asset management units by Nomura for a whopping $1.8 billion is not the only deal in the finance sector, as Harvard University is also involved in M&A discussions.
- The deal between Nomura and Macquarie will expand Nomura's fund's assets under management to around $770 billion, making it one of the larger PE firms in the industry.
- Despite facing financial challenges, Harvard University is also looking to exit certain illiquid assets to improve liquidity and alleviate pressure from regulatory tax hikes and funding cuts.
- In the secondary market, Lexington Partners, another private equity firm, has been reportedly associated with potential M&A activities, specifically with the possible purchase of the private equity assets from Harvard University.
- Alongside these transactions, a new player in private equity, Unity Advisory, is entering the asset management industry, backed by Warburg Pincus, with a total capital of up to $300 million; however, they are not directly involved in the Nomura-Macquarie deal.
