World’s Hedge Fund Manager Reaches Agreement to Acquire NewSmith
NewSmith, the investment management operations of Mayfair-based equities boutique, has signed acquisition deal with Man Group Plc, the world’s largest publicly traded hedge-fund manager, terms of the deal were not disclosed.
NewSmith,
which is based in London and also has offices in Tokyo, has about $1.2
billion in funds under management and is 40 percent owned by Sumitomo
Mitsui Trust Bank, one of Japan’s largest lenders.
After
the deal, NewSmith would be incorporated into Man Group’s fund manager
GLG. The acquisition is expected to further expand GLG, enhance its
presence in Japan and provide further opportunities to manage funds held
by Sumitomo, a major Man Group client.
Sumitomo has indicated that it supports the transaction and intends to maintain its investment in the NewSmith funds, Man said.
“We
believe that NewSmith is a highly complementary business for Man GLG,”
Luke Ellis, the Man Group president, said in a news release. “The
acquisition brings a new dimension to the firm, including a Japanese
hedge fund and an excellent team in Tokyo, as well as adding further
scale to our London business.”
The transaction is subject to regulatory approval and is expected to be completed in the second quarter.
Source: New York Times
