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Japan Financial Giant To Buy 40 Per Cent Stake In UK Asset Manager
Tom Burroughes
15 December 2011
The Sumitomo Trust and Banking Co, a subsidiary of Japan’s Sumitomo Mitsui Trust Holdings, is buying a 40 per cent stake in NewSmith Capital Partners, a UK-based asset management firm overseeing a total of £2.1 billion ($3.24 billion) in client money. A new limited liability partnership, NewSmith, will be formed. Under the terms of the deal, STB will, via a new UK subsidiary, make an initial investment of £35 million (around Y4.2 billion). “In expanding its global asset management business, STB’s strategy is to broaden its client base and to enhance its profitability in Europe. STB aims to strengthen its asset management business platform and fulfill its strategy by way of strategic alliances with or acquisitions of interests in boutique investment managers with strong products,” the Japanese firm said in a statement. NSP provides UK, European, Global, and Japanese equity products, serving clients such as foundations and pension funds.