Smith Graham & Co. Investment Advisors acquired Ark Asset Management’s fixed-income, and small-cap and midcap value equity assets, confirmed Gerald B. Smith, Smith Graham chairman and CEO.
The deal is expected to close today. Terms were not disclosed.
About 90% of Ark’s clients have agreed to transfer their assets to Smith Graham, Mr. Smith said. Smith Graham will now have its original offices in Houston and Ark’s New York location. It has not been determined what will happen to the rest of Ark’s assets.
Cyril M. Theccanat, Smith Graham’s CIO, will become president and CIO of the combined firm, which will keep the name Smith Graham, and will oversee all investment operations within the Houston and New York offices. Mr. Smith said he would spend the majority of his time in New York over the next year as the firms combine. Mr. Theccanat will remain in Houston, Mr. Smith said.
Smith Graham had focused primarily on cash management and broad-market bond products; the acquisition lets it add stable value, alpha plus and small-cap and midcap value equities. The expanded firm’s assets under management will now be around $5.7 billion.
Smith Graham will add all of Ark’s fixed-income and small- and midcap product teams, increasing the firm’s number of investment professionals to 20. The acquired products will change their brand names to Smith Graham.
“This really completes our product offerings along the yield curve on the fixed-income side,” Mr. Smith said.
Officials from Ark did not return a call by press time.
