AIM-listed discretionary fund manager Brooks Macdonald has announced it is buying Spearpoint, manager of the Arch Cru funds.
Brooks Macdonald will pay £23.1 million, and said it expected the additional deferred consideration as part of the deal to hit £9 million. The acquisition is expected to complete on Monday, with the deferred consideration payable in November 2014.
Channel Islands-based Spearpoint manages around £1.1 billion of assets, and Brooks Macdonald said buying the manager fitted with its growth strategy.
‘The acquisition of Spearpoint is a major step forward for the group and captures an opportunity we have been seeking for a number of years,’ said Brooks Macdonald group chief executive Chris Macdonald (pictured). ‘It adds scale, offshore and international capability together with the acquisition of a strong investment management and pensions team.’
Spearpoint took over management of the Arch Cru funds from Arch Financial Products in December 2009, charged with winding up the suspended funds over a five-year period. It reported pre-tax profits of £3.9 million on revenues of £11.4 million in 2011.