Italian banking group UniCredit has agreed to acquire NewSmith Financial Products, an independent debt advisory business which is part of London-based financial services firm NewSmith Capital Partners.

Under the terms of the deal, NewSmith founder and chief executive TJ Lim will become co-head of markets at UniCredit responsible for fixed income. His team of 10 will also join the Italian bank, confirmed a spokesman for the Italian bank. UniCredit will also take a 5% stake in NewSmith Capital Partners and become an investor in NewSmith funds.