Brooks Macdonald buys Arch cru fund manager Spearpoint

Brooks Macdonald has acquired discretionary fund manager Spearpoint, manager of the Arch cru funds, in a deal that could reach £32m.

Expected to complete on 19 November, the deal will see Brooks pay an initial £23.1m for the Jersey and Guernsey based group, with a deferred consideration of up to £9m, based on the future level of Spearpoint's discretionary FUM, payable in November 2014. Spearpoint took over management of the Arch cru range in late 2009, with a mandate to oversee an orderly wind-up of the funds. Brooks will raise £21.5m via a placing of 1,869,566 million ordinary shares at a price of £11.50 per share to fund the acquisition. It said the placing has received "strong support" from existing and new inst...