Mergers & Acquisitions / Joint Ventures

Sumitomo takes 40% stake in NewSmith for strategic partnership


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