Twitter icon Email alerts icon Latest News RSS icon Magazine icon Stay connected:

View the article online at http://citywire.co.uk/wealth-manager/article/a635014

Brooks' FUM to hit £4.5bn on Arch Cru fund manager buyout

by Sarah Miloudi on Nov 16, 2012 at 07:37

Brooks' FUM to hit £4.5bn on Arch Cru fund manager buyout

Brooks Macdonald has acquired Spearpoint, a Jersey and Guernsey-based provider of discretionary fund management amd manager of the Arch Cru funds.

The acquisition should be complete by Monday and will see Brooks take on the fund manager, which also has stockbroking and retirement planning capabilities.

Announcing the deal to the stock exchange, Brooks, which is listed on the alternative investment market (AIM), said Spearpoint is considered a leader in integrated wealth management in the Channel Islands and has funds and assets under management of approximately £1.1 billion.

The combined group will have discretionary funds under management of approximately £4.5 billion, excluding advisory, property and third party administration assets.

Part of this process of integration will include the proposed placing of 1,869,566 new ordinary shares, with the aim of raising £21.5 million.

This should cover the bulk of the acquisition cost, which is estimated in the region of £23.1 million.

Speaking to investors about the deal, Chris Macdonald, chief executive of Brooks Macdonald, said the acquisition should immediately enhance the firm's earnings given that Spearpoint reported pre-tax profits of £3.91 million on revenues of £11.42 million for the year ended last December. 

Moreover, the acquisition fits with the AIM-listed group's plans for growth.

'The acquisition of Spearpoint is a major step forward and captures an opportunity we have been seeking for a number of years,' Macdonald (pictured) said.

'It adds scale, offshore and international capability together with the acquisition of a strong investment management and pensions team.

Sign in / register to view full article on one page

1 comment so far. Why not have your say?

John M via mobile

Nov 16, 2012 at 09:19

"charged with a mandate of gaining as much value from investors in the wind-up of the funds". Yes they certainly did.

report this

leave a comment

Please sign in here or register here to comment. It is free to register and only takes a minute or two.

News sponsored by:

Long time coming: is the recovery here to stay?


Ian McVeigh and Steve Davies, managers of Jupiter's UK Growth fund, talk about their predictions for the UK equity space. Click here to watch a series of sponsored interviews with Jupiter's fund managers on the UK equity market.

Today's top headlines

More about this:

Look up the shares

  • Brooks Macdonald Group PLC
    Register or Sign in to receive email alerts for items in your favourites whenever we write about them

Archive

On the road

Click here to find out more from the Audience Development team.

Sorry, this link is not
quite ready yet