ACI says Keydata’s third party business is very profitable but the buyer will need deep pockets to acquire it.
ACI director John Gracey says: “I think that we would be more interested in the individuals of the firm. It would be too big a commitment for us to take on the business.”
Keydata’s former corporate development manager Adrian Neave left the firm after four years to lead the launch of a new structured products distribution business at Arbuthnot Banking Group.
ACI sales and marketing manager Shane Whitehead says: “Keydata’s been in business since 2001, Neave had been there for four years and they’ve been able to get products out prior to that so there’s no reason to think that they couldn’t continue on with that.”
ACI is pushing ahead with its own business after it was offloaded by Arc Fund Management last year in a management buyout by Gracey who was finance director.
ACI has around 15 staff and over £100m under management and is looking to double this in a year’s time.
Gracey says it continues to be a challenge to offer competitive products in the current environment. He says: “We’ve been looking for a growth product and it has been quite hard to get something that is really attractive out there.”
ACI says core income plans are still the most popular amongst clients but exotic indices such as its recently launched twin index linked Brazil/China plan have also attracted investor demand and India would be the next natural choice for a launch.
Gracey says: “There’s quite a lot of volatility in these markets and so the sort of the return you can get based on the risk you’re prepared to take is quite good.”