ARC Group, a Chinese investment bank and financial services firm, has agreed to acquire a controlling profit-sharing stake in Luminous Capital, a US-based private equity and advisory firm.
The financial terms of the deal were not disclosed.
Founded in 2019, Luminous Capital has offices in New York, Denver, and Toronto.
ARC Group, which was established in 2015, is engaged in mergers and acquisitions (M&A) and capital markets advisory.
Luminous Capital managing partner John Darwin said: “Luminous Capital and ARC Group are a natural complement to each other’s expertise and resources.
“We are excited to join ARC Group and offer a unique investment strategy through our high yield credit fund to ARC’s capital network in addition to assisting with a U.S. presence for their leading advisory practice.”
According to ARC Group, the acquisition is expected to strengthen its position as a major financial advisory and management consulting services provider.
The deal will give it footprint in New York City apart from enabling it to offer additional exposure to its clients and investors to the US markets.
It is also expected to improve the global reach and service width for ARC Group and Luminous Capital.
The Chinese firm’s full-service financial platform is complemented by the private equity and advisory expertise of Luminous Capital owing to the latter’s deep-rooted knowledge of US capital markets with a focus on the legal cannabis industry.
The two firms expect to realise synergies across multiple practice lines such as M&A, financing, capital markets advisory, private equity, and operational restructuring.
ARC Group president Sergio Camarero said: “This is another key milestone in our growth strategy. Luminous Capital gives us a US presence in the financial hub of the world – New York City.
“We have worked with the Luminous team on their SPAC and observed the excellence and integrity their team brings to their advisory and investing practice. Luminous Capital is a step further in building out the ARC platform as we look to become an international financial institution strengthening the opportunities between Asia and the rest of the world.”
Last month, ARC Group acquired Asia Perspective, a Scandinavian-owned Asia Pacific (APAC) cross-border consultancy, for $12.8m.
