Nomura buys stake in US hedge fund

20 December 2006

The Japanese securities firm Nomura Holdings is to buy a 15 per cent stake in the US Fortress Investment Group hedge fund and private equity manager.

The deal values Fortress at $6 billion, with Nomura paying $888 million for the stake.

Under the deal, expected to close in January, Nomura will take ownership of Class A shares and the proceeds will go to the Fortress principals.

New York-based Fortress, established in 1998, now has around $26 billion in assets under management, including $9.4 billion of hedge funds and $13.6 billion of private equity funds.

The deal follows Nomura's expansion plans in a bid to compete on a globally and reduce its reliance on Japanese stock trading. Last month the firm bought complete control of global agency-broker Instinet.

Last month Fortress announced it was aiming to raise $750 through an IPO selling ten per cent of its stock.

Become a bobsguide member to access the following

1. Unrestricted access to bobsguide
2. Send a proposal request
3. Insights delivered daily to your inbox
4. Career development