UAE-headquartered Arlo Wealth has merged with international advisory business Harrison Rowe.
The combined company, AHR Private Wealth, will have regulatory licences to operate and provide advice in the UAE, Ireland, Liechtenstein, Mauritius and Malaysia, as well as a Financial Conduct Authority (FCA) regulated arm in the UK for returning expatriates.
AHR Private Wealth will have $1bn (£800m, €890m) in assets under management and be managed by a leadership team comprising of directors from both Arlo Wealth and Harrison Rowe.
Daniel Dickinson will continue in his role as chief executive and William Burrows will be managing director.
Tripartite arrangement
International Adviser spoke with Dickinson and AHR Private Wealth executive director Tyla Phillips about the merger and how there could be more news from the firm as early as next week
Dickinson said: “We’re already finalising another merger. We’re trying to do a tripartite arrangement.
“Next week, we’re probably going to be announcing that we’re looking to bring another business in. That would add another string to the bow.
“We’re going to operate in multiple jurisdictions, and some of them have a regulator that are deemed more robust than others.
“As a group, we’re going to operate to the highest level of regulation.”
Listing
The firm’s growth plans are being carefully thought out.
Phillips said: “There’s quite a bit that we’re doing. We’re on the verge of quite a large corporate partner backing us, we’re very close to two of the GCC sovereign wealth funds.
“There’s a lot going on, but I think for now, we’re working towards a listing.”
Dickinson admitted that he does not know where the firm will list and “it would come down to advice and guidance”.
“We’ve got a really strong advisory board and the people at the sovereign wealth entities,” he added.
“I’m throwing the word listing out like it’s nothing, but I would imagine it’ll be a junior market listing somewhere, so that we can retain some control whilst providing value for all employees and a wider market.”
UAE
AHR Private Wealth’s roots are based in the Middle East; however, Dickinson is looking at the firm as a global player not just the “core focus” in the UAE.
He said: “[The UAE is] quite a small market. We are going to finalise our application to the Dubai International Financial Centre (DIFC) quite soon. We may look at the Abu Dhabi Global Market (ADGM) as well, depending on what we want to do.
“And that will just appeal to a different calibre of client and wealth professional. And I use that word wealth professional on purpose. We’re looking for people with high calibre, not historically the people that may have been operating in the UAE.
“With our licensing reach now, where we go next is the big issue. In all of the office locations you’ve seen, we’re talking to people in each of those locations.
“We have quite a stringent interview process, the people we talk to need to be referred to us from two life companies or fund houses. We really try to get a full view of who the person is.
“That’s the way that we try to recruit.”
Carefully adding headcount
The merged firm will have around 140 people across all offices.
The duo said there will be no rush when recruiting and they will look for the “right characters”.
“It’s important for us to get people up to certain qualification levels as an adviser, and try and bring that in at all jurisdictions that we’re working in,” Phillips said.
“We’re quite protective on the brand and the company itself. We do want to grow, but we’re obviously being careful who we would bring him on board.”
Dickinson added: “The people that you’re bringing in; they’re sitting in people’s front rooms, giving them advice about their lives, and they’re doing that on a licence that’s got my name on it.
“If you’re bringing in people that are expecting to send clients back to the UK, and they’ve been poorly looked after, we are directly at risk.
“But what’s been really interesting is, none of the people that we’re interviewing who are serious, say what they’re going to get paid.
“They don’t even say, as people would historically, I want this percentage. Now, it’s all about value and where do they go in the business and how do they become part of the fabric.”
Repatriation
One of the main services the firm has is its repatriation offering.
The pandemic forced more people to return home, and it generated a big opportunity for advisers to service these clients, globally.
Phillips added: “A lot of companies have found it as a negative because the amount of people that they could service here is less.
“I think, from our point of view, the fact that we have got a service where we can focus on repatriation and overall planning, we’re probably more needed than ever before.
“I think there has been quite a lot go back. But I feel that if you’ve done your job properly as an adviser, they should feel quite comfortable in that process of going back, other than maybe being a bit upset that they’re going back, because they might have wanted to stay.
“But financially, they shouldn’t feel uncomfortable and unorganised.”
