(HedgeCo.Net). Nomura Holdings has confirmed its boldest strategic push yet into private debt and alternative asset management, a sector rapidly reshaping global asset allocation. The Japanese banking giant said it plans acquisitions and expanded partnerships to build out one of Asia’s most competitive private credit platforms, echoing a broader shift in global capital markets toward private markets. Reuters
With private debt markets estimated at some $3 trillion globally—up from roughly $2 trillion in 2020—Nomura’s leadership sees a major opportunity to domesticate direct lending and private credit in Japan and beyond. Asset managers worldwide have been expanding their alternative asset footprints as traditional fixed-income yields have been challenged by macroeconomic policy shifts and prolonged inflationary pressures. Reuters
Nomura’s CEO, Kentaro Okuda, said the firm intends to grow its alternative assets under management from around ¥2.9 trillion in 2025 to an ambitious ¥10 trillion by 2031 by targeting direct lending and mezzanine finance opportunities—segments historically underserved in global financial centers outside the U.S. and Europe. Strategic alliances, such as a recent capital injection into a U.S. private-credit fund, underline this pivot. Reuters
Why This Matters Now
- Private debt yields remain attractive relative to traditional fixed income amid volatile interest rate expectations.
- Institutional investors — pension funds, insurance companies, and endowments — are allocating more capital to credit strategies that generate steady, contractual cash flows.
- Traditional bank lending has shrunk in certain middle-market segments, opening space for non-bank lenders.
Financial strategists say this trend — illustrated by Nomura’s moves — signals a lasting structural shift: alternative assets are no longer peripheral but core portfolio drivers for many global investors.
