Sectors: 1064

Acquisition will provide ARC with resources to expand

10 July 2014

Endiang Holdings Inc, an investment holding vehicle controlled by Canadian entrepreneur Arthur Labatt, has completed its acquisition of ARC Group Limited (ARC).

ARC is the holding company of Asset Risk Consultants, an independent, privately owned consulting practice based in the Channel Islands providing investment consulting services on both funds and private portfolios. Under the terms of the acquisition Endiang will be providing ARC with development capital to support ARC's expansion plans. All senior management have agreed to multi-year "lock-in" arrangements.

The acquisition was agreed in principle in January, subject to contract discussions and regulatory and other approvals which have now been obtained.

The acquisition will provide ARC with the necessary resources to take the existing range of services to the next level. It will further strengthen ARC's ability to assist wealthy individuals, charities and family offices to meet their financial goals through delivering impartial, bespoke investment structuring advice.

ARC will also be expanding its comprehensive range of manager research and portfolio performance reporting services to the fiduciary sector and independent financial advisers (IFAs), through its web-based SUGGESTUS research portal.

Over the course of the next 12-18 months ARC is planning to open offices in London, Switzerland, the Cayman Islands and Canada. ARC currently has offices in both Guernsey and Jersey.

Graham Harrison, Group Managing Director and founder of ARC, said: "The transaction will enable us to take our ambitious expansion plans forward with the goal of becoming a leading global private client investment consulting practice, with sustainable operations in Europe, North America and Asia, by 2020. By aligning our interests with those of Endiang, this objective becomes an achievable proposition and one that we are very excited about."

Mr Labatt said: "Having been a client of ARC for the past decade I have seen the quality of their staff and value of their services first hand. I am delighted to be able to support Graham and his team in their ambitious expansion plans. With significant wealth comes significant responsibility. Like me, I believe many wealthy families and their advisers will be attracted to ARC's '4-i's' of: independence, integrity, insight and innovation."

In completing this acquisition, Endiang Holdings was advised by Miller Thomson in Toronto and by Mourant Ozannes in Guernsey and ARC was advised by AO Hall.

Mourant Ozannes Partner Gavin Farrell commented: "We were delighted to assist Endiang Holdings Inc on this matter. Working closely with the regulators in both islands, our cross jurisdictional and discipline teams were able to ensure a seamless transaction for all parties involved."

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