Man Group has announced it has entered into a conditional agreement to acquire the investment management business of NewSmith.
The equity investment firm has four portfolio management teams with 15 investment professionals, investing in UK, European, Global and Japanese equities, and has approximately $1.2bn (£778.8m) funds under management.
NewSmith, which has offices in London and Tokyo, is currently 60 per cent owned by its founders and senior staff and 40 per cent owned by Sumitomo Mitsui Trust Bank (SuMi TRUST), Japan’s largest institutional asset manager.
The financial details of the acquisition have not been disclosed, but according to the statement SuMi TRUST has “indicated its strong support for the transaction and the intention to maintain its investment in the NewSmith funds”. It is expected the deal will complete in the second quarter of 2015, subject to regulatory and other approvals.
Once completed the four NewSmith strategies will be integrated into Man GLG, which the group said would complement Man GLG’s existing products.
Paul Roy, chairman of NewSmith, and Ron Carlson, the chief executive, will “work with Man GLG over the next 12 months to ensure a seamless management transition and integration”.
Man Group added that the acquisition would deliver a number of benefits including further expansion of Man GLG’s equities business and adding a Tokyo based Japan Long Short Equity Strategy to its product line that would therefore enhance Man GLG’s presence in a key market.
Luke Ellis, president of Man Group, said: “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. It is testament to the Man GLG team that we have received such a strong endorsement from SuMi TRUST, a key strategic partner of Man Group, and we are delighted our relationship will be further enhanced following this acquisition.”
