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