Arch Group, the UK investment firm, is to launch a wealth management operation and a shipping fund, following a strategic shift which started in 2006, according to Financial News.

The financial services group, founded byRobin Farrell, former head of alternatives at investment bank Dresdner Kleinwort, initially focused on advising companies on how to structure complicated deals. Since 2006, its focus has turned to asset management, incorporating absolute return strategies that use its expertise in structured finance.

Assets under management have risen to nearly $2 billion and Mr Farrell expects Arch to manage $4 billion by the end of its financial year, next February.

Mr Farrell said Arch’s esoteric vehicles are likely to appeal to high net worth investors seeking ways to preserve their wealth.

Arch is looking for a recruit to lead Arch Wealth Management. It has already hired Gian Paolo Potsios from corporate finance boutique Europa Partners, who was previously a Citi managing director before joining Europa last year. He joins the unit today.

His appointment illustrates Arch’s continued interest in corporate finance. Along with fund managers, it employs risk managers and structurers who vet the opportunities in which many of its funds invest.
Arch will set out to offer customised portfolios to wealthy clients as well as the firm’s existing funds, which will soon include a separate shipping fund.