Man Group acquires Japan equities specialist NewSmith for 'under $50m'

20th Feb 2015 10:14

Man Group, the hedge fund company, has agreed to acquire the investment management business of NewSmith for an undisclosed sum, estimated to be less than $50m.NewSmith, which has $1.2bn of assets under management, compared to Man Group's last reported figure of $72.3bn as at 30 September 2014.Analysts at Shore Capital calculated that the consideration for the deal would be "under $50m" funded from existing cash resources, including an element of deferral or earnout.The investment firm, in which Japan Sumitomo Mitsui Trust Bank holds a 40% stake, has offices in Tokyo and London and specialises in equities, especially in Japan."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," said Luke Ellis, president of Man Group.Man, which is due to report final results on Tuesday 25 February, completed a number of acquisitions in the US as it seeks to broaden its business horizons, the largest of which was US quant equities manager Numeric for acquired for an initial $219m with a further $275m contingent on performance over the next five years.