BlackRock Inc., PNC Bank Corp.'s asset management arm, said Tuesday it formed a new company with Nomura Asset Management Co., Tokyo, to sell investments in Japan.
The partners have invested $3.7 million apiece for equal stakes in Tokyo-based Nomura BlackRock Asset Management Co., said Laurence Fink, chairman and chief executive officer of BlackRock.
BlackRock has been in partnership with Nomura for roughly 18 months. It already sells three investment trusts to Japanese investors and is working on a fourth product. The partnership manages $1.3 billion of Japanese assets and sells to retail and institutional investors, Mr. Fink said.
The assets will be managed at BlackRock's New York office, but the new company will have five marketing and distribution people in Japan. Mr. Fink said two BlackRock employees will move to Tokyo within 90 days.
Nomura Asset Management is a separate entity from Nomura Securities, Mr. Fink said, referring to the brokerage that reported a $4.53 billion loss for the year ending March 31.
BlackRock manages $131 billion of assets. Nomura Asset manages $128 billion. Mr. Fink said it is BlackRock and not its Pittsburgh-based parent PNC that is investing in the venture.