Nikko Asset Management is in advanced talks to acquire a stake in French asset manager Tikehau Capital and form a partnership in Asia, according to a statement.
The deal would involve a distribution agreement in Japan and elsewhere in Asia and a joint venture in private markets investment strategies in the region. The acquisition terms, including the stake amount to be purchased, weren’t disclosed in the statement.
Tokyo-based Nikko, which manages about $219 billion of assets, could increase the stake over time, but the total will "remain below the first applicable statutory disclosure threshold,” or 5% of the share capital or voting rights, according to the statement.
The companies’ partnership is the latest sign of heightened interest in Asian private capital markets among established asset managers worldwide. With Asia viewed as the next frontier for private capital, some U.S. and European firms have struck partnerships with local players or are raising funds to capture opportunities in the region.
"Private capital is becoming more and more important for all financial institutions,” Antoine Flamarion, co-founder of Tikehau, said in an interview. "What private capital players are trying to tackle in Asia is mainly fundraising for now and then after that, opportunities to invest. The best way for us to expand in Japan and Asia is to form strategic alliances.”
Tikehau’s management owns about 57% of the firm, according to corporate filings. Singapore’s state investment firm Temasek Holdings and Morgan Stanley, among others, also own stakes in Tikehau.
Nikko has been looking for a "strong partner” in the private asset space that fits its growth plan, Stefanie Drews, president of Nikko, said in a statement.
"Asia is a critically important market for this asset class,” she said.