Nomura Holdings, a Tokyo-based financial services company, announced today that it has formed a strategic partnership with an independent asset management firm, SPARX Group to establish a listed investment firm for investment in unlisted companies.
In an official announcement, Nomura mentioned that the Japanese have limited investment opportunities to support the growth of unlisted companies. The newly introduced joint venture aims to fulfil the financial needs of unlisted companies through an asset management firm tentatively named Nomura SPARX Investment, Inc. (‘Nomura SPARX’).
According to the mentioned details, the planned investment corporation will be listed on the Tokyo Stock Exchange’s Venture Funds Market. Additionally, the companies are planning to give advice related to the IPO listing and M&A to the emerging companies.
“The alliance brings together Nomura’s deep expertise in supporting the growth of unlisted companies, including through IPOs, and SPARX’s solid track record in the asset management business, including its venture capital business that invests in unlisted company stock. Leveraging these strengths, Nomura and SPARX plan to create a new platform that will allow assets owned by investors to be offered as growth capital for unlisted companies,” Nomura mentioned in the announcement.
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Moreover, Nomura outlined the financial details regarding the planned investment corporation. The investment management firm has started with a capital of 400 million yen, including capital reserves. Nomura has a 51% shareholding ratio and the SPARX Group has 49%.
“In recent years, there has been a growing demand in Japan for risk money through the private markets, and the financing needs of unlisted companies with growth potential are expected to remain robust. However, individual investors in Japan have limited investment opportunities that allow them to provide their assets as risk money to support unlisted company growth,” the company stated.
Nomura and SPARX showed commitment to provide financial resources to the unlisted companies in order to strengthen the competitiveness of the local industry.