The city is reviewing a permit for Tokyo-based Nomura to create information technology space on part of the fourth floor of Riverplace Tower on the Downtown Southbank as it takes over one of Macquarie Group’s business units.
Ajax Building Co. of Midway is the contractor for the estimated $250,000 project. Gensler is the architect. Meskel & Associates Engineering PLLC is providing private plan review.
Nomura is a global financial services group and an Asian investment bank. A spokesman in New York City sent a statement Aug. 25 by email.
“A dozen or so Nomura employees are set to arrive later in the fall as part of the firm’s previously announced acquisition of Macquarie’s U.S. public asset management business. The increased geographical presence reveals our commitment to the U.S. Market,” it said.
Australia-based Macquarie Group is a global financial services group that offers asset management, retail and business banking, wealth management, advisory services in financial markets and commodities.
A Macquarie spokesperson said Sept. 8 that 15 employees will be joining Nomura in the roles they have now, mostly support and back-office staff. The moves are expected when the sale is completed in the fourth quarter.
The permit appears to cover just the IT space on the 16,221-square-foot fourth floor. The space being renovated now is identified as a “huddle” meeting room.
The Macquarie spokesperson said Nomura will be subleasing space.
Macquarie in Jacksonville
The spokesperson said Macquarie Group now has about 237 employees in Jacksonville working across teams that, in addition to tax and finance, include treasury, commodities, asset management, legal, compliance, operations and human resources.
It established a global financial services office in Jacksonville in early 2016. It leases the fourth and fifth floors at the 28-story Riverplace Tower at 1301 Riverplace Blvd. on the Southbank.
In coming to Jacksonville, Macquarie agreed to create 123 jobs by the end of 2017 and pay an average wage of $64,356, in addition to benefits.
For the first 123 jobs, the Jacksonville City Council approved taxpayer incentives of $393,600, comprising a Qualified Target Industry grant of up to $147,600 and a training grant up to $246,000.
As of year-end 2017, Macquarie Global Services (USA) LLC employed 145 employees at Riverplace Tower, according to the city Office of Economic Development.
The company said in late 2019 that it had 272 employees there.
Sources familiar with the operation note that staffing levels are adjusted based on the needs of its businesses and operations.
Nomura-Macquarie deal
Nomura and Macquarie announced April 21 that Nomura agreed to buy three companies from Macquarie in a 100% stock purchase transaction expected to close by the end of 2025.
The deal called for Nomura to buy Macquarie’s U.S. and European public asset management business, with about $180 billion (in U.S. dollars) in retail and institutional client assets across equities, fixed income and multi-asset strategies.
The three comprised Macquarie Management Holdings Inc., which owns the public asset management business in the U.S.; Macquarie Investment Management Holdings in Luxembourg; and Macquarie Investment Management Holdings in Austria.
Nomura agreed to acquire all of the stock of the three companies for $1.8 billion cash.
“Nomura has identified global asset management as a key strategic growth priority for the organization,” a news release said.
It said Nomura would significantly expand the global capabilities and client footprint of its Investment Management Division, which managed about $590 billion in client assets.
Upon the acquisition, total assets under management of Nomura’s Investment Management franchise are expected to increase to about $770 billion in U.S. dollars, with more than 35% being managed on behalf of clients outside Japan.
The acquisition also provides Nomura with a scaled hub, headquartered in Philadelphia, to further grow its international investment management business.
Nomura leaders
The release said the asset management team will continue to be led by Shawn Lytle, president of the Macquarie Funds and head of Americas for Macquarie Group; John Pickard, CIO Equities & Multi-Asset; Greg Gizzi, CIO Fixed Income; and Milissa Hutchinson, head of U.S. Wealth.
The news release said Nomura, in partnership with the management team, plans to carry out several initiatives to support organic growth, increased scale, and diversification of the business’s capability after the acquisition.
“This acquisition will align with our 2030 global growth and diversification ambitions to invest in stable, high margin businesses,” said Kentaro Okuda, Nomura president and group CEO.
“It will be transformational for our Investment Management Division’s presence outside of Japan, adding significant scale in the U.S., strengthening our platform, and providing opportunities to build our public and private capabilities. We are delighted with the prospect of welcoming all 700-plus employees that will be joining the Nomura Group.”
Chris Willcox, Nomura’s chairman of the Investment Management Division, said the transaction “will be a significant step in building a truly global franchise with a comprehensive set of solutions to serve investors worldwide.”
As part of the transaction, Nomura and Macquarie have agreed to work together on product and distribution opportunities, including Nomura being a U.S. wealth distribution partner for Macquarie Asset Management and providing continued access for U.S. wealth clients to Macquarie Asset Management’s Alternative investment capabilities.
Additionally, Nomura said it has committed to providing seed capital for a range of Macquarie Asset Management’s Alternative funds tailored for U.S. wealth clients.
AloJapan.com