UniCredit Group and NewSmith Capital Partners announce strategic agreement - TJ Lim appointed as Co-Head of Markets at UniCredit Markets & Investment Banking Division

London, Wednesday, July 02, 2008

UniCredit Group (UniCredit) and NewSmith Capital Partners LLP (NewSmith) are pleased to announce a strategic agreement. Subject to regulatory approvals, UniCredit will acquire NewSmith Financial Products (NSFP), the Credit Advisory unit of NewSmith and become an investor in NewSmith funds. UniCredit will also assume a 5% stake in NewSmith Capital Partners (NSCP).

All partners and employees of NSFP will move to the UniCredit Markets & Investment Banking Division (MIB) to be part of the Global Credit Business Line of MIB. TJ Lim, NSFP’s Chief Executive Officer, will join the Executive Committee of the MIB and will be appointed Co-Head of Markets with specific responsibility for Fixed Income and Currency, Global Credit and Sales.

UniCredit Deputy CEO, Sergio Ermotti, said: “Over the past five years, NewSmith has developed a robust and successful asset management and advisory platform with outstanding talent. We are convinced that this agreement will create substantial value for the bank’s stakeholders."

Edoardo Spezzotti, Head of UniCredit’s Markets & Investment Banking Division, added: “TJ Lim and his team are proven leaders in the markets businesses in large organizations and will bring additional wealth of experience to our bank.”

NewSmith founding partner Paul Roy said: “We are delighted that UniCredit has become an investor in NewSmith. UniCredit’s acquisition of NewSmith Financial Products is a mutually beneficial transaction that will enable us to focus solely on our asset management activities. This will be good for our clients and good for the business as we extend and deepen our range of investment strategies and capabilities.”

NewSmith was advised by Greenhill & Co.