Nomura Capital Management's Robert Stark - building a private credit business within a global bank

What It Covers

Robert Stark explains building Nomura Capital Management's private credit business within a global bank, focusing on diversified private credit strategies for wealth channel clients with $1-10 million, requiring open architecture and long-term capital commitment.

Key Questions Answered

• •Private credit diversification strategy: Beyond direct lending's $1.5-2 trillion market, private credit includes $12 trillion in asset-based lending, real estate lending, specialty finance, royalties, litigation finance, and aircraft leasing—mostly still on bank balance sheets but shifting to asset managers.
• •Product development process: Interviewed 50 RIA founders and CIOs before launching, discovering all firms only had direct lending exposure and wanted diversified private credit solutions. This client feedback drove an 18-24 month development cycle from concept to market-ready fund structure.
• •Capital requirements evolution: Initially planned $100 million seed capital, but competitive dynamics now require $200-500 million for private credit launches. Building requires 25+ hires across investment, distribution, operations, marketing, legal, and compliance—impossible as standalone startup without institutional backing.
• •RIA channel dynamics: Ten years ago, 10 RIAs managed $10+ billion; now 280 firms exceed this threshold. Each RIA operates differently—large firms don't guarantee centralized decision-making, while smaller firms may have total centralized allocation. Coverage requires 5-6 meetings before discussing specific solutions.