ARCH has taken a 48% stake in FP Group, to drive expansion into the Middle East and Far East, where FP Group is already well established and known for its highly personalised investment, wealth management and advisory services for private clients, corporates and expatriates.
The new shareholding structure, together with the introduction of additional capital and strategic investment, gives FP Group a significantly strengthened capital base with which to implement its future plans to pursue revenue growth and control costs. FP Group’s strategy involves franchising, mergers and acquisition of like-minded IFA firms in areas where FP Group is already established and licensed, including Australia, Hong Kong, India, Indonesia, Japan, Malaysia, and the U.A.E.
In turn, the investment will boost ARCH’s presence in Asia and the Middle East and provide a platform for its alternative investments product range. Additionally, the partnership will enable ARCH to develop customised products to suit Asian and Middle Eastern investors in conjunction with FP Group’s banking arm, FP Bank.
Commenting on the investment, Robin Farrell, CEO of ARCH Group says:
“FP Group provides a highly complementary platform in terms of business mix and geographical spread of clients. They are well positioned to benefit from the emerging market trends in the asset management and wealth management sectors. This acquisition further demonstrates our strategy of activist investing in innovative financial businesses. It is a transformation investment for their business and one which provides opportunities for ARCH to expand into their territories.”
Chairman of FP Group, Sean Kelleher said: “Banks are targeting either the retail market or the high net worth (HNW) market which has left an untapped area of opportunity in three highly distinct niches including the growing expatriate segment, upwardly mobile individuals and the growing breed of SMEs.”
“Our approach to the advisory business, unique market positioning and plan for growth has captured the institutional imagination and the successful conclusion of this deal will enable FP to fulfill our goal of becoming the “family office” for the mass affluent.
“We are actively looking at complementary IFA businesses for acquisition and franchising opportunities and would encourage business owners to contact us.”
Thursday, October 9- 2008 @ 11:17 UAE local time (GMT+4) Replication or redistribution in whole or in part is expressly prohibited without the prior written consent of Mediaquest FZ LLC.