Smith Graham & Co. Investment Advisors L.P. (No. 8 on the B.E. Asset Managers list with $2.753 billion in assets under management) acquired the fixed-income and small- and midcap value equity assets of a New York City-based firm in a deal thatâ€™s expected to increaseÂ assets to nearly $6 billion. Specific terms of the deal, which was completed Friday, were not disclosed.
According to Gerald B. Smith, chairman and CEO, the acquisition of Ark Asset Management Co. Inc. will add $2.8 billion in assets to his Houston-based firmâ€™s portfolio. â€śItâ€™s a very transformational event for our firm, when you can double your assets in this kind of market and gets to a level that puts you on a different playing field,â€ť he said from his recently opened office in New York Cityâ€™s financial district.
Ark Asset Management is a majority-owned firm that was once Lehman Brothersâ€™ asset management business until taken private via a leveraged buyout offer in 1988.