Sumitomo Mitsui Banking Corporation (SMBC), the largest entity of the Sumitomo Mitsui Financial Group, has entered into a strategic partnership with Singapore-based real assets manager ARA Asset Management.
SMBC Group joined ARA as a new strategic shareholder and the lead investor of a US$500 million equity round of financing, according to a statement by ARA.
SMBC is among the world’s premier financial institutions with US$2.25 trillion in assets as at 31 December 2020 and a global presence in 40 countries.
”With the new support of SMBC, ARA, together with its existing shareholders, will further strengthen its core asset management business and bolster its expansion plans in new economy sectors, such as logistics, data centres, infrastructure and private credit, and in key markets globally,” said ARA in a statement.
“We warmly welcome SMBC Group as a new partner and investor to our thriving platform, and view the strategic investment in ARA by SMBC as a tremendous endorsement of our enduring business model and growth prospects,” said Justin Chiu, Chairman of ARA.
”As the largest real assets manager in Asia Pacific, ARA Group stands to benefit from long-term market trends in the APAC region, such as the surge in demand for new economy real assets. We are very excited about the prospect of working with our new shareholders and hope to expand swiftly on our new partnership with SMBC,” added Justin Chiu.
“We look forward to working with ARA in support of its asset-light business model and expansion plans, which align very well with SMBC Group’s own growth strategies in Asia. ARA’s diversified business, large suite of investment offerings and AUM scale are unrivalled in Asia, so we are pleased to enter into this mutually beneficial and strategic partnership, which we hope will help
to further strengthen ARA’s competitive position and market leadership,” said SMBC.