Nomura Holdings Inc (TYO:8604) and SPARX Group Co., Ltd. today announced that they have agreed to a strategic alliance to establish a listed investment corporation that will invest in unlisted companies. The two companies also plan to establish an asset management firm tentatively named Nomura SPARX Investment, Inc.

In recent years, there has been 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 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.

Following an initial period of privately placed investments, the planned investment corporation will be listed on the Tokyo Stock Exchange’s Venture Funds Market with the aim to invest assets from a wide range of investors in unlisted company stock.

To help unlisted portfolio companies grow, the two companies will provide them with support related to IPOs and IR activities in addition to offering financing and M&A advice.