Arc Fund Management plc has bolstered its wealth management division by completing its third acquisition since September.

The fund manager has bought Throgmorton Financial Services, a Manchester-based independent financial adviser. This follows the addition of Throgmorton Asset Management and Independent Investment Associates to its portfolio.

This latest deal could be worth as much as £1.6 million, comprising £800,000 in cash and the same value in shares. Part of the consideration is deferred and will be paid if Throgmorton Financial meets agreed performance targets.

This is a further step in the development of the group’s wealth management division, and increases its funds under management or advice to some £500 million.

Throgmorton Financial has estimated funds under advice of £85 million and made a pre-tax profit in the year to January 2008 of £130,000 on a £1.3 million turnover.

Arc chief executive Christopher Rowe made it clear that this would not be the last acquisition the fund manager makes as it continues to expand its coverage across the UK. “Our funds under advice now stand at nearly £500 million, which compares with some £140 million in May last year.”

The acquirer combines fund management and corporate finance expertise, specialising in funds supporting early-stage private companies. It has a particular focus on managing tax efficient funds, including EISs and VCTs and has been trading on AIM since July 2006.

Throgmorton Financial Services was established in 2003 to provide independent financial planning to high-net-worth individuals.