The acquisition of TT International is expected enable the Japanese financial services company to grow its overseas asset management business
Sumitomo Mitsui Financial Group (SMFG) has agreed to acquire UK-based asset management company TT International and all of its businesses for an undisclosed price.
TT International, which was established in 1988, had nearly $8.4bn (£6.85bn) in total assets under management, as of the end of July 2019. The asset manager, which is headquartered in London, has an investment research office in Hong Kong and also an office in New York, which specialises in marketing and client servicing.
The British asset management company claims to manage several billions of dollars in a broad product suite for sophisticated institutional investment clients in various parts of the world.
TT International is the first overseas asset manager to be acquired by the Japanese firm
The transaction will mark the first-ever acquisition made by the Japan-based Sumitomo Mitsui Financial of an overseas asset management firm.
The Japanese firm said that the British asset manager and all of its businesses have strengths in Asia and China, and emerging marketing equities.
Furthermore, the businesses to be acquired cover a broad range of pension investors across Europe, North America, and Asia, thereby enabling Sumitomo Mitsui Financial to grow its asset management business outside of Japan.
The Japanese firm had marked the asset management sector as a strategic business focus for its present medium-term management plan. In this regard, the company said that it is making efforts to reinforce its asset management segment.
In April 2019, Sumitomo Mitsui Asset Management and Daiwa SB Investments merged to create Sumitomo Mitsui DS Asset Management in Japan. Sumitomo Mitsui Financial plans to boost its management capabilities and cultivate investors outside of Japan by means of alliances, investments, and acquisitions of overseas management firms.
Subject to the approval of relevant authorities, the acquisition of TT International is expected to be completed by the end of March 2020, said the Japanese financial services company.
TT International will continue to maintain its brand, staff, investment autonomy, and existing management structure. Tim Tacchi, the founder of the company will be its managing director.