Man Group will acquire NewSmith's investment management unit, adding $1.2 billion of assets to the alternative money manager's business, and adding to its existing equities business under Man GLG.
Man Group, which has $72.3 billion in assets under management, said in a statement it entered into a conditional agreement for the deal. It will acquire 100% of the business, which is currently owned about 60% by founders and senior staff, and about 40% by Sumitomo Mitsui Trust Bank, said a spokesman for Man Group.
"Man is buying the full asset management business, save a very small private equity fund which has been in run off for a couple of years," the spokesman said in an e-mail. "Also, they are not taking NewSmith Asset Management LLP, the FCA regulated investment manager."
The spokesman added that NewSmith's 15 investment professionals, who invest across U.K., European, global and Japanese equities, will be integrated into Man GLG as part of the deal. The acquisition is expected to be completed in the second quarter of this year. Terms were not disclosed.
In the statement, Man Group said the deal will add a Tokyo-based Japan long/short equity strategy to Man GLG's existing strategies, and provide further opportunities to manage funds on behalf of SuMi TRUST.