Japanese financial services company Sumitomo Mitsui Financial Group (SMFG) is looking to invest up to $25m in Affirmative Investment Management (AIM), a UK-based asset management firm.
AIM focuses on fixed-income portfolios offering a positive environmental and social impact. The business managed $650m in assets at last year-end.
This will make SMFG Japan’s first lender to join forces with an expert in ESG bond investments, reported Reuters.
The Japanese lender plans to make an infusion of $20m in AIM.
It will make up to another $5m over the next few years. The addition investment will be based on the performance of AIM, according to the report.
Post deal completion, SMFG will own 24.9% of AIM’s total shares outstanding. SMFG will have a 4.9% interest in AIM in terms of voting rights.
None of the parties commented on the issue.
Last year, it was reported that SMFG will acquire British asset manager TT International, which focuses on emerging-market equities.
Nikkei reported that SMFG will pay around JPY20bn ($188m) as deal consideration for this acquisition.
However, it was reported that the deal’s value may increase up to JPY35bn after including performance-based compensation provisions.
Early in 2020, SMFG also announced an investment in alternative investment manager Ares Management.
