Sumitomo moves into UK institutional space

Sumitomo Mitsui Trust Holdings has agreed to acquire an interest in London-based investment manager NewSmith Capital Partners.

The Japanese bank will acquire a 40% stake in NewSmith for an initial £35m investment.

NewSmith has £2.1 billion under management and will give the Japanese bank access to its range of equity funds and strong relationships with institutional clients.

“Sumitomo Trust Bank’s acquisition of an interest in NewSmith will be mutually beneficial to both parties,” a spokesperson says.

“In particular, Sumitomo Trust Bank adds a solid foundation to its global asset management business and the transaction offers NewSmith the opportunity to strengthen its financial stability and expand its client base in areas outside Europe, in particular Japan.”

Sumitomo Mitsui was created earlier this year when Cho Mitsui and Sumitomo merged to create the trust bank.

Cho Mitsui established a foothold in the UK market through Standard Life in 2009 and also operates London-based asset manager Cho Misui Trust International.

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