The latest mergers and acquisitions at Stanhope Capital Group, a global wealth management firm.

Stanhope Capital Group and Luxembourg-based Arche Associates, a multi-family office, this week announced that they have entered into a definitive merger agreement. 

The combined company will oversee close to $29 billion and employ approximately 160 people across eight offices worldwide, the firm said in a statement.

In addition to expanding the group’s geographic footprint, the merger will enable clients of both firms to benefit from an enhanced global investment team with strong capabilities across all asset classes, including equities, fixed income, hedge funds, private equity and real estate, the firm continued. 

Upon closing the transaction, Stanhope Capital and Arche will operate as a single company, particularly in the area of investment research and strategy.

Founded in 2004 by Daniel Pinto (pictured left), Stanhope Capital currently oversees about $26 billion for private clients, endowments, charities and other institutions across the globe. 

The firm, which employs 140 people in its offices in London, Geneva, Paris, New York, Philadelphia, Palm Beach and Boston, is active in wealth management, investment consulting, private investments and merchant banking. 

In 2021, Stanhope Capital merged with US-based FWM Holdings, a company founded and led by Keith Bloomfield. As a result of this merger, the group now owns wealth manager Forbes Family Trust and pioneer alternative assets specialist Optima Fund Management, founded by Dixon Boardman in the 1980s.

Arche, founded in 2012 by Frederic Otto (pictured right), Rudy Paulet and Franck Payrar, currently oversees about $2.5 billion for high net worth families and employs 20 people in Luxembourg. 

The firm, which offers wealth management and family office services, was the first entity in Luxembourg to be approved by the Ministry of Finance under the regulatory “family office” regime. The firm also has a private investment platform which focuses on real estate investments, particularly in Canada. 

Prior to founding Arche, Frederic Otto was CEO of Banque Privée Edmond de Rothschild Europe for 15 years, the firm said. 

Once the merger has been agreed, Frederic Otto, Rudy Paulet and Franck Payrar will all become shareholders in Stanhope Capital Group and carry on with their respective senior management functions. 

Otto will be chairman of Arche Associates and join the board of Stanhope Capital Group as vice-chairman. Paulet will continue as head of Arche’s Family Office Services unit and Payrar will be head of Arche’s wealth management unit.

Welcoming the move, Daniel Pinto, chairman and CEO of Stanhope Capital Group, said: “Luxembourg is one of the most important financial centres in Europe and Arche is certainly a brilliant example of what a dynamic and innovative player can accomplish in this fast-growing market.” 

“We have known and admired Arche for many years and share the same client-centric values,” he continued. 

Frederic Otto added: “At Arche, we are all excited about joining forces with Daniel and the team at Stanhope Capital. Of paramount importance to us is the fact that this merger will enable us to further enhance the service we offer our clients.” 

“In the current environment, portfolios must be properly diversified across regions and across asset classes, both liquid and illiquid. Stanhope’s global presence and depth of expertise in traditional asset classes but also in private equity, real estate and hedge funds is highly complementary with our skill set and capabilities,” he said. 

The merger is subject to customary closing conditions. Financial and legal terms of the transaction will not be disclosed.