Episode summary
Nomura's Robert Stark - How Private Markets Are Changing Everything!
Alt Goes Mainstream
· · Hosts: Michael Sidgmore · Guests: Robert Stark
Summary
Robert Stark argues that asset management has been reshaped by four forces: tighter regulation pushing banks out of lending, a long migration from public to private markets, relentless fee compression, and a market structure that now rewards a small number of huge firms. He says that shift created the opening for Nomura Capital Management to build a private credit business inside a global bank, but only if the firm could commit capital, patience, and entrepreneurial freedom over a long horizon.
He makes the case that private credit is much broader than direct lending. Nomura’s strategy is built around a diversified private credit solution that can include asset-based lending, real estate lending, specialty finance, litigation finance, and aircraft leasing, with public and private credit treated as points on a continuum rather than separate silos. He says the goal is not one-stop coverage of everything, but the right solution for the end client, often through open architecture and partnerships.
A major theme is investor education. Stark warns that semi-liquid and evergreen structures are often misunderstood, and says advisors need to know what they are buying, how much liquidity they are giving up, and which client type fits which vehicle. He believes the RA channel is the right starting point because it is fiduciary-aligned, entrepreneurial, and large enough to scale, but still early in its adoption of private credit.
Key takeaways
- Robert Stark says private credit is still early in its shift beyond direct lending, with the broader opportunity spanning asset-based lending, real estate lending, specialty finance, litigation finance, and aircraft leasing.
- Stark argues the winning model for Nomura is open architecture, because a diversified private credit strategy needs multiple origination partners to scale.
- He says advisors and allocators want fewer, higher-quality solutions, not more products, especially in credit.
- Stark warns that evergreen and semi-liquid funds are often marketed too casually and should be treated as illiquid capital.
- He says the RA channel is the natural first focus because it is fiduciary-aligned, entrepreneurial, and still underpenetrated in private markets.
- Stark believes Nomura’s long-term institutional backing is essential because building a private credit platform takes more capital, time, and hiring than many people expect.
Notable quotes
“the speed of change especially over the last 5 years has been absolutely astonishing”
“private credit is a lot more than just direct lending”
“you invest in these structures think about them as pretty much illquid because when you need liquidity it won't be there”
“the whole idea is diversification if your end client is the 1 to10 million household and never mean structure probably is the right structure”
How the episode opens
This episode of the Alco Mainstream podcast is brought to you by Ultimus, a leading full-ervice fund administrator for asset managers in private and public markets. As private markets continue to move into the mainstream, the industry requires infrastructure solutions that help funds and investors keep pace. Ultimus is a leading full-ervice fund administrator for asset managers in both private and public markets, offering a wide range of capabilities across registered funds, private funds, and public plans, as well as outsourced middle office services.
Delivering operational excellence, Ultimus helps firms manage the everchanging regulatory environment while meeting the needs of their institutional and retail investors. Ultimus provides comprehensive operational support and fund governance services to help managers successfully launch retail alternative products. Trusted by institutions, investment consultants, registered investment adviserss, state governments, and fund managers, Ultimus provides solutions for nearly every investment structure in the marketplace.
Visit www.ulttimus fundsolutions.com to learn more about Ultimus' technology-enhanced services and solutions or contact Ultimus executive vice president of business development Gary Harris on email at g har har har har har har har har har har har har har har har har har har har harris at ultimus funfundsolutions.com. We thank Ultimus for their support of alts going mainstream. We're going mainstream's going to eat.
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Welcome back to the Elkco's mainstream podcast. Today's episode dives into private credit and building an asset management business inside of a leading global bank. We sat down in Namura's NYC office with Robert Stark, the CEO of Nomura Capital Management and head of investment management in the Americas for the Nomurra group.
From the episode’s captions: roughly the first two minutes, lightly cleaned. Keep watching on YouTube →
Topics
- private credit
- asset management business building
- wealth channel
- open vs closed architecture
- evergreen fund strategy
Companies and tickers mentioned
- JPM
- Nomura
- Nomura Capital Management LLC
- Alterum Capital Partners LLC
- FS Investments
- J.P. Morgan
- Russell Investments
- McKinsey & Company
Watch the episode
Watch “Nomura's Robert Stark - How Private Markets Are Changing Everything!” on YouTube
Summary, takeaways and quote selection by Octagon. Quotes are short excerpts; the full conversation is in the episode.
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Alt Goes Mainstream, this episode and its artwork belong to Michael Sidgmore. Octagon is not affiliated with the show; this page is an independent summary.
