ARC Group Acquires US Private Equity and Advisory Firm Luminous Capital to Strengthen Leadership in Investment Opportunities Between Asian and Western Markets

Rhea-AI Summary

ARC Group has announced its acquisition of a controlling profit-sharing interest in Luminous Capital Inc., a US-based private equity firm. This move is intended to enhance ARC Group's advisory services and establish a presence in New York City, a crucial financial hub. The partnership is expected to leverage Luminous's expertise in the legal cannabis sector, facilitating unique investment opportunities and deeper client relationships. Notably, Luminous will launch a high-yield private credit fund, targeting rapid growth in the cannabis market. This acquisition aligns with ARC Group's strategic goal of expanding its global reach in financial advisory.

Positive

• Acquisition of Luminous Capital enhances ARC Group's advisory services.
• Establishes a significant presence in New York City.
• Leverages Luminous's expertise in the legal cannabis industry.
• Synergies expected across M&A, Capital Markets, and Private Equity.
• Opportunity for high-yield credit fund targeting cannabis growth.

Negative

• None.

ARC Group is an international investment bank and financial services firm headquartered in Shanghai. Established in 2015, ARC Group is a global leader in SPAC and IPO advisory. In 2022, the firm was ranked no.1 in De-SPAC in the U.S. by SPACInsider.

NEW YORK, NY, Feb. 14, 2023 (GLOBE NEWSWIRE) -- via NewMediaWire -- ARC Group, a global leader in M&A and Capital Markets Advisory, has entered into an agreement to acquire a controlling profit-sharing interest in US-based private equity and advisory firm Luminous Capital Inc. (“Luminous”). This strategic acquisition aims to further solidify ARC Group’s position as a leader in global financial advisory and management consulting services through giving them a New York City presence as well as offering additional exposure for their clients and investors to US markets.

The transaction enhances the global reach and service width for both ARC and Luminous. ARC Group’s full-service financial platform is complemented by Luminous’s private equity and advisory expertise through its deep-rooted knowledge of US capital markets with a focus on the rapidly growing legal cannabis industry. ARC Group and Luminous Capital both expect to see synergies across various practice lines including M&A, Capital Markets Advisory, Financing, Operational Restructuring and Private Equity.

With Luminous launching its high yield private credit fund, this partnership will provide a unique opportunity for ARC’s capital network to gain exposure to the fast growing, legal US cannabis industry. The deal shall ultimately help bolster deeper client relationships for both entites’ investors as well as clients.

Luminous Capital Partners John Darwin, Joshua Mann and Mac McDonald will be integrated at a corporate level with John and Josh joining ARC Group as Managing Directors and Mac as Senior Vice President.

ARC Group President Sergio Camarero commented: “This is another key milestone in our growth strategy. Luminous Capital gives us a US presence in the financial hub of the world – New York City. We have worked with the Luminous team on their SPAC and observed the excellence and integrity their team brings to their advisory and investing practice. Luminous Capital is a step further in building out the ARC platform as we look to become an international financial institution strengthening the opportunities between Asia and the rest of the world.”

Managing Partner John Darwin commented: “Luminous Capital and ARC Group are a natural complement to each other’s expertise and resources. We are excited to join ARC Group and offer a unique investment strategy through our high yield credit fund to ARC’s capital network in addition to assisting with a U.S. presence for their leading advisory practice.”

About ARC Group

Established in 2015, ARC Group is a full-service financial institution deeply rooted in Asia with global reach. They are global leaders in M&A and Capital Markets advisory. According to spacinsider.com league tables, ARC ranks 1^st as M&A financial advisor by transactional value, market share and by number of transactions in 2022.

ARC Group works with companies to help them develop a comprehensive Capital Markets strategy, raise their visibility on the financial arena and position them for long-term success, regardless of whether they choose to pursue a strategic transaction, a round of financing, an IPO or SPAC. They provide a full spectrum of Investment Banking and Advisory services.

ARC Group acts as a bridge to connect Asia with Europe and America. With offices in mainland China, Hong Kong, Singapore, Indonesia, Malaysia, India, UAE, Mexico and New York, they are well-positioned to provide on-the-ground cross-border financial advisory services.

For more information, visit: https://arc-group.com/.

About Luminous Capital

Established in 2019, Luminous Capital Inc. is a private equity firm with offices in New York, Toronto, and Denver. Our focus is on the regulated US cannabis industry and other high growth, emerging-market industries.

The team represents a valuable combination of careers in banking, investing and first-hand experience of building, operating and monetizing successful private and public ventures.

We work with our partners to expand their business and vision by providing the necessary access to the capital markets paired with informed financial advice and business strategies from a wealth of experience. Utilizing our global reach, access to synergistic capital partners and operational expertise, we offer a range of services to investors and operators around the world.

For more information, visit: https://www.luminouscapitalinc.com/.

Contacts

ARC Group
Sergio Camarero
President
sergio.camarero@arc-group.com

Luminous Capital
John Darwin
Managing Partner
jdarwin@luminouscap.ca

FAQ

What is the purpose of ARC Group's acquisition of Luminous Capital?

The acquisition aims to enhance ARC Group's advisory services and establish a presence in New York City, allowing for increased exposure to US markets.

What industry focus does Luminous Capital have?

Luminous Capital focuses on the regulated US cannabis industry and other high-growth sectors.

How will the acquisition impact ARC Group's operations?

The acquisition is expected to create synergies across various service lines, including M&A and Capital Markets Advisory, enhancing client relationships.

What is the expected outcome of the partnership between ARC Group and Luminous Capital?

The partnership is anticipated to bolster client engagement and market opportunities, particularly through Luminous's high-yield private credit fund.

When was the acquisition of Luminous Capital by ARC Group announced?

The acquisition was announced on February 14, 2023.