6 Jan 2012
Sumitomo Mitsui Trust Holdings through Sumitomo Trust & Banking Co., Ltd. (STB) is to acquire a minority interest in NewSmith LLP and establish a strategic partnership, subject to regulatory approvals.
Under the transaction terms, STB will pay £35 million to acquire 40% of NewSmith LLP, the entity that will acquire the asset management businesses of NewSmith Capital Partners. The remaining 60% of the business will be owned by NewSmith’s partners.
STB will be appointing three members to the board of NewSmith LLP, chaired by NewSmith co-founding partner Michael Marks and including co-founders, Paul Roy, Stephen Zimmerman and Ron Carlson.
STB is an asset management, trustee services, banking and real estate company with $300 billion of assets under management, 90% of which is accounted for by public and corporate pension funds in Japan.
NewSmith LLP manages about £2.1 billion. It provides alternative and traditional asset management services to corporate, institutional and government clients, together with pension funds, foundations, family offices and high net worth individuals.
Under the transaction terms, STB will pay £35 million to acquire 40% of NewSmith LLP, the entity that will acquire the asset management businesses of NewSmith Capital Partners. The remaining 60% of the business will be owned by NewSmith’s partners.
STB will be appointing three members to the board of NewSmith LLP, chaired by NewSmith co-founding partner Michael Marks and including co-founders, Paul Roy, Stephen Zimmerman and Ron Carlson.
“This agreement cements the longstanding relationship that NewSmith and its individual partners have enjoyed with STB,” Marks said. “We share a common bond of commitment to our clients and we are delighted to have established a strategic partnership with one of Japan’s largest and most highly regarded asset managers.”Paul Roy, chairman of NewSmith Asset Management, said: “We are delighted to welcome STB to the NewSmith partnership. STB’s presence will deepen our distribution capabilities in Japan and enhance our ability to offer new funds to investors.”
“We appreciate the quality of NewSmith’s brand, reputation and people,” said Akio Otsuka, director and deputy president executive officer, Sumitomo Trust & Banking Co., Ltd. “This agreement provides us with a new window on UK/European asset management and is consistent with our long term and global strategic aims.”
STB is an asset management, trustee services, banking and real estate company with $300 billion of assets under management, 90% of which is accounted for by public and corporate pension funds in Japan.
NewSmith LLP manages about £2.1 billion. It provides alternative and traditional asset management services to corporate, institutional and government clients, together with pension funds, foundations, family offices and high net worth individuals.
