Arbuthnot Latham, the wealth management unit of Arbuthnot Banking Group, has agreed to acquire Renaissance Asset Finance (RAF) from its founders.

RAF is a finance provider for various specialist assets such as vintage and expensive cars as well as SME business assets. The firm’s net assets stood at £1.6m as at 30 November 2016.

The total consideration for the deal will be paid in cash in four stages. At deal closing, Arbuthnot Latham will pay the first amount, which will equal the net assets of RAF at that time.

The private bank will make the remaining three payments annually based on the profitability of the business, which will not be more than £6.5m in total. 

The deal is slated to close early in the second quarter of 2017, subject to regulatory nod.

The consideration for the acquisition and the refinancing of RAF’s funding liabilities amounting to about £66m) will be funded from Arbuthnot’s existing cash resources.

Arbuthnot Latham CEO Ian Henderson said: “The acquisition of RAF will fit well alongside our growing Private and Commercial banking units and I welcome the team from RAF into the Group. I look forward to working with them in the future.”