Guernsey-based Asset Risk Consultants (ARC) has completed its management buy-out (MBO) and is now majority-owned by its employees.
Arthur Labatt, the Canadian businessman who invested in ARC in 2014, remains a minority ordinary shareholder. The largest ordinary shareholder is an employee benefit trust.
Founded in 1995, ARC has operations in Guernsey, Jersey and the UK. It has around 60 members of staff and says it provides investment advice to over 100 wealthy families with combined assets in excess of $15 billion. It also created and manages the ARC Private Client Indices and ARC Charity Indices.
Mr Labatt said that during his involvement with the business he had become “convinced that ARC's businesses and its standards of service to its clients would be considerably enhanced if there were substantial employee ownership.” He said the “time was right” to make the move given the “solid financial base and sustainable revenue growth across multiple jurisdictions.”
Graham Harrison, managing director of ARC Group and a member of the PAM Awards Judging Panel, described the MBO as a “fantastic result.” He added that the involvement of Mr Labatt had “allowed ARC to expand its operations internationally and to invest in ongoing software development.” He said this allowed it to “establish a firm foundation for future expansion.”
“ARC believes that independent thinking follows directly from independent ownership,” added Mr Labatt. “And independent thinking underpins ARC’s culture of driving innovation to power insight for the benefit of their clients. This capital restructuring ensures that ARC can attract and retain the best investment talent and continue to provide its clients with innovative investment insight over the long term.”
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