Wealth Manager - the site for professional investment managers

Register to get unlimited access to Citywire’s fund manager database. Registration is free and only takes a minute.

ARC staff complete MBO as backer cashes out

ARC staff complete MBO as backer cashes out

ARC's employees have bought out a majority stake in the firm, almost four years after Arthur Labatt purchased the business and funded a global expansion.

Labatt remains chair of the business and will maintain a minority holding, having provided capital to support the systems needed to scale the business.

The largest shareholder in the private client performance indexing group will now be the company's employee benefit trust.

Managing director Graham Harrison (pictured) said: 'The involvement of Arthur Labatt a few years ago has allowed ARC to expand its operations internationally and to invest in ongoing software development.

'His support has allowed us to establish a firm foundation for future expansion. It is a fantastic result to be able to reorganise ARC to achieve broad equity ownership by senior management.'

Labatt, heir to Canada's Labatt brewery fortune and founder of Trimark Investment Management, was a client of the company before buying it in 2014.  

Labatt added: ‘During my period of involvement I became convinced that ARC's businesses and its standards of service to its clients would be considerably enhanced if there were substantial employee ownership.

‘With a solid financial base and sustainable revenue growth across multiple jurisdictions, the time is now right for the broad enfranchisement of senior management to provide stability and security for both ARC employees and ARC clients.’

In addition to expanding into new regions the company has rapidly expanded its Suggestus research platform, which enables advisers to track discretionary manager performance.

Founded in 1995 and now employing circa 60 staff, ARC provides investment advice to over 100 wealthy families with combined assets in excess of $15 billion (£10.67 billion).


Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.
Your Business: Cover Star Club

Profile: How Julius Baer plans to win UK wealth

2 Comments Profile: How Julius Baer plans to win UK wealth

Julius Baer has embared on a hiring spree to fuel its ambitious UK expansion plans.

Wealth Manager on Twitter