Japan’s Nomura to beef up private investment business

A man walks next to a sign for Nomura Securities in Tokyo July 25, 2013. REUTERS/Yuya Shino

Nomura Holdings Inc said on Tuesday it planned to beef up business with unlisted companies, including offering advice to startups, aiming to diversify revenue after quarterly earnings took a battering from the coronavirus pandemic.

Japanese biggest brokerage and investment bank said in a business strategy update it was seeking new growth in private equity, private debt and infrastructure, as well as in offerings of digital bonds and security tokens.

“To achieve sustainable growth, I have to take Nomura to a different dimension. How do we get there? Strengthening our expansion from public to private is the strategy,” Chief Executive Kentaro Okuda told an online investor briefing.

Nomura said current revenue from business with private companies was “not that big” but declined to provide specific figures.

This month Nomura posted a surprise fourth-quarter net loss, its first in five quarters, as the pandemic wreaked havoc on global stock markets.

“It’s unclear if Nomura will be really successful in private markets but fee income from the new businesses could become stable and a key driving force for growth,” said Toshihiro Matsuo, an analyst at S&P Global Ratings in Tokyo.

Nomura’s retail division saw revenue slide 20% in April after staff had to halt face to face meetings with customers due to Japan’s state of emergency to curb the spread of the virus.

But the bank believes the problem is temporary, forecasting 110 billion yen in pretax income for the division for the year ending March 2023, more than double the amount booked for the past business year.

Nomura said a year ago it was aiming for about 140 billion yen in cost cuts by March 2022. About 70% of that plan had been achieved, Okuda said.

Reuters

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.