Nomura to wind down European transition management desk

Nomura to wind down European transition management desk

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Nomura is closing down its transition management desk in Europe, Global Investor/ISF understands, one of many divisions to be hit by cuts announced by the Japanese investment bank this week.

The unit, which helps institutional clients move investments between and among asset managers or liquidate large portfolios, will shut up shop after existing mandates have been fulfilled.

A London-based spokesperson for the group declined to comment.

Over 25 specialists work within the transition management department under Craig Blackbourn.

Earlier this week the Tokyo-based securities firm, which has struggled for years with its profitability overseas, said it will be taking "decisive action" in response to recent market volatility.

Full details of the cuts will be revealed later this month, but it is expected that the bank will cease equity research, sales, trading and underwriting for European stocks.

Up to three quarters of Nomura’s prime brokerage personnel in Europe have also been axed.

For the business overall, 500-600 jobs will go in Europe, with other cuts in the Americas, separate people familiar with the matter said, declining to be named.

It comes as global investment banks have been scaling back their businesses as market volatility eats into revenues.

Transition management itself has been under pressure in recent years.

The industry has been witnessing a shrinking field of players as global equity commissions of 8-10 basis points have been cut to 3-5 basis points or lower.

Reputational risk and capital constraints have also forced major players out of the market.

Credit Suisse and JPMorgan both departed the transition management business in 2013. BNY Mellon followed a year later.


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