Nikko AM announces alts joint venture
Nikko Asset Management has formed a joint venture with an Asian private asset manager.
The firm has signed a deal with Singapore-based Tikehau Capital to form Tikehau Amova Investment Management, with a formal launch subject to regulatory approval.
Nikko announced in September 2024 that it would rebrand as Amova in September 2025. Nikko AM is one of Asia’s largest asset managers with US$246 billion ($384 billion) in assets under management as of 31 March 2024 across active equity, fixed income, multi-asset and alternative strategies.
It said the deal will “focus on developing innovative private asset investment strategies tailored to the Asian market” and leverage Tikehau’s capabilities in private debt. The duo also plan to launch a dedicated decarbonisation strategy.
Products from the joint venture will be distributed through the global network of both firms.
“The partnership aims to develop innovative, Asia-focused private asset investment strategies by combining the complementary expertise of both firms. The goal is to address the growing investor demand for private asset investment in Asia, while aligning with key secular themes such as decarbonisation,” it said in a statement.
Tikehau has $81.3 billion in assets under management across capital market strategies, credit, real assets and private equity.
Earlier this year, a report from Bain & Company urged traditional active managers to acquire or partner with alternative firms. The report highlighted BlackRock’s announcement late last year that it would acquire global credit investment manager HPS Investment Partners for US$12 billion.
In Australia, similar examples are evident with Regal Partners’ acquisition of private capital and alternative investment specialist Merricks Capital, and GQG Partners purchasing stakes in Avante Capital Partners, Proterra Investment Partners and Cordillera Investment Partners from Pacific Current Group.
Looking ahead to this year, Bain & Company expects M&A activity in the alternatives space to only ramp up further, as asset managers expand with new offerings to meet investor demand.
“We believe that the momentum will continue – and possibly accelerate – in 2025, especially as wealth and asset managers not currently in private markets find themselves forced to acquire or partner to survive.
“The most successful traditional asset managers and wealth managers will look for deals that provide them with products that generate alpha for clients, while alternative asset managers will primarily aim to build scale. As the market converges and becomes even more competitive, companies that pursue neither route will find themselves a target for competitors that do.”
AUTHOR
Laura Dew
Recommended for you
Clime Investment Management has welcomed an independent director to its board, which follows a series of recent appointments at the company.
Ethical investment manager Australian Ethical has cited the ongoing challenging market environment for its modest decrease in assets over the latest quarter.
Commentators have said Australian fund managers are less knowledgeable compared with overseas peers when it comes to expanding their range with ETFs and underestimating the competition from passive strategies.
VanEck is to list two ETFs on the ASX next week, one investing in residential mortgage-backed securities and the other in Indian companies.
