Macquarie Group (ASX:MQG) unit Macquarie Asset Management's AU$2.8 billion divestment of North American and European Union public markets businesses to Nomura will allow it to focus on higher-growth alternatives, said Morgan Stanley in a Tuesday note.

Under the deal, Macquarie Asset Management will sell its North American and European public investments business to Japanese financial services group Nomura for AU$2.8 billion in cash.

The deal includes equities, fixed income, and multi-asset strategies with AU$285 billion in assets under management.

The investment firm believes the deal is the group's attempt at repositioning for higher return on equity growth.

The bank said it expects about AU$500 million gain on sale in late 2026, with about AU$100 million ongoing earnings reduction from 2027 or roughly 2.5% of the consensus group earnings.

Morgan Stanley has an equal-weight rating on Macquarie Group and a price target of AU$191.

The company's shares rose 5% in recent Wednesday trade.