EFG International, a Switzerland-based private banking and asset management company, has agreed terms to transfer its stake in UK-based Marble Bar Asset Management (MBAM) to MBAM’s senior management, in exchange for a perpetual cashflow stream based on future MBAM revenues.
EFG International will no longer have capital commitments to MBAM. MBAM’s senior management will invest in developing the business and will replace working capital previously provided by EFG International.
Going forward, EFG International will not consolidate MBAM for purposes of its consolidated financial statements. The right to receive the perpetual cash flow stream will be accounted for as a financial asset designated at fair value through profit and loss and will be valued using a mark-to-model approach in line with IFRS requirements.
The transaction is subject to regulatory approval, and it is anticipated that the new arrangement will be concluded during the third quarter of 2010.