NewSmith, the London-based asset management group formed by senior executives of Merrill Lynch and its predecessor firms Smith NewCourt and Mercury Asset Management, has taken a major step forward in its strategic development with the announcement of a partnership with leading Japanese financial group Sumitomo Mitsui Trust Holdings.
In a transaction announced this week, Sumitomo Mitsui Trust Holdings – through its Sumitomo Trust & Banking (STB) asset management arm – is to acquire a minority interest in NewSmith LLP and establish a strategic partnership with the firm.
STB is buying 40% of NewSmith LLP, the entity that will acquire the asset management businesses of NewSmith Capital Partners, in a deal that is reported to put a value of some £80-100 million on the business. The remaining 60% will be owned by NewSmith’s partners.
STB will be appointing three members to the board of NewSmith...