Robert Stark, CEO of Nomura Private Capital and Head of Investment Management Americas, joined Keith Black, Managing Director of RIA Channel, to discuss how interval funds increase access to private credit investments.
Nomura is $500 billion global asset manager with the majority of its assets in Japan. Nomura’s entire US business is credit-oriented, with $30 billion in assets under management. Nomura Private Capital is looking to grow in the US and will consider acquisitions of teams with credit experience.
Stark believes that interval funds, especially in private credit, will be attractive to RIAs. Interval funds can increase access to alternative investments, especially for accredited investors. The benefits of interval funds include daily purchases, quarterly liquidity of at least 5% of outstanding shares, and 1099 tax treatment which avoids K-1s.
While the opportunities in private credit are diverse, many funds only invest in direct lending strategies. Nomura believes that it is important to take diversified exposures to private credit, with their fund investing across direct lending, asset-based lending, real estate lending, and specialty finance strategies. Stark notes that the newest vintage of private credit is interesting, with the loans being originated at today’s higher base rates.
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