Nomura Holdings (TYO:8604) CEO Kentaro Okuda said the firm sees strong potential to expand in private markets as Japanese investors seek diversification, Bloomberg reported Thursday.

Okuda said Japan's exposure to private assets remains low compared with overseas portfolios, offering room for growth. Nomura's alternative assets under management rose 25% in the past year to 2.7 trillion yen as of June, according to the report.

He said the bank carefully explains risks to clients amid concerns over private credit following U.S. bankruptcies. Nomura's M&A advisory pipeline is also expanding, driven by rising cross-border activity among Japanese companies, the report said.

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