Nomura Holdings Inc., Japan's largest securities firm, plans to raise as much as 50 billion yen ($490 million) to invest in private equity funds focused on Asia.

Nomura's private equity advisory unit is meeting 20 funds in China, 20 in India, 20 in Australia and New Zealand and 30 in Japan, said Junichi Ebata, the president at Private Equity Funds Research and Investments Co., or PEFRI. Nomura owns 65 percent of PEFRI, which it helped set up in October 2007.

About $16 billion of buyouts in Asia have been announced this year, a 60 percent increase from the same period in 2007, according to data compiled by Bloomberg. The collapse of the subprime mortgage industry has caused investors to flee public markets, creating an opportunity for private equity funds to raise capital, said Ebata.

"Investor demand for private equity investments is increasing rapidly,'' Ebata said in an April 11 interview. "The U.S. subprime crisis has created uncertainty over traditional assets and investors are looking for alternatives.''

PEFRI will make selections for the 30 billion yen to 50 billion yen fund of funds in October, he said. Funds of funds attract investors and then farm out the money to a variety of managers.

Nomura's incoming Chief Executive Officer Kenichi Watanabe said last month he aims to expand in Europe and Asia and will "take risks'' to compete with Wall Street banks even after his firm lost $1.5 billion on U.S. subprime-linked investments.