Smith Graham to Increase Assets to Nearly $6 Billion in Acquisition Deal

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 that’s expected to increase  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 firm’s portfolio. “It’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,” he said from his recently opened office in New York City’s financial district.

Ark Asset Management is a majority-owned firm that was once Lehman Brothers’ asset management business until taken private via a leveraged buyout offer in 1988.