Arc Fund Management has appointed Stephen Hadley to its board following the firm's acquisition of Throgmorton Asset Management (TAM).
Hadley, brought in as executive director of the AIM listed asset manager with immediate effect, holds over 930,000 shares in Arc and currently is a director at TAM.
Christopher Rowe, chief executive officer at Arc, says: “We welcome Stephen to the Board and look forward to his contribution to the development not only of TAM but of the rapidly expanding Arc Group.”
Hadley will hold office until the next general meeting of the company at which he will be eligible for re-election.
Arc bought financial advisory company TAM for a sum in the region of £2.7m, it was announced this week.
The deal included an initial amount of around £1.61m including £1.2m cash and £405,000 in shares.
A deferred amount up to £1.11m is payable subject to certain performance targets being met by TAM before December 2008.
Arc says the acquisition will help in the development of its wealth management division and will grow its funds under management to £275m.
TAM has estimated funds under advice of £150m and its normalised earnings for the year to 31 December 2006 amounted to £210,000 on turnover of £1.57m with net assets of £168,250.
Rowe said: “This acquisition lays the foundations of Arc's wealth management division.
"The establishment of this division is a significant step in the development of the Group and we will go on to grow it both organically and by acquisition.
“For the group, the purchase of TAM is earnings enhancing and improves the quality of our earnings and increases funds under management.
"In addition, our existing client base will have access to a wider range of services as well as Arc's range of investment products becoming available to TAM's clients.”
Arc was formed in 2002 when it took over Sherriff Research and changed its name to Arc Fund Management. The group specialises in Enterprise Investment Scheme (EIS) and VCT investments.
In June 2005, it launched its European Property fund. Structured as an OEIC, the fund includes residential property as part of its investment strategy.
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