London commodity broker set for global growth with £3.75m investment from Leeds equity firm
A London interdealer broker for global commodities is set for expansion after securing multi-million pound investment from a Yorkshire investment firm.
Leeds-based YFM Equity Partners (YFM) has made a £3.75m investment into ARRACO Global Markets.
Founded in 2015, London-headquartered ARRACO specialises in brokerage for global commodities, working a range of international clients including oil majors, global trade houses, energy utilities, shippers, banks and funds.
The new funding will be used to expand ARRACO’s UK footprint, hire additional people, invest in its team and broaden its product offering.
In addition, ARRACO plans to open two new international offices in Singapore and Houston, which together with offices in London and Tokyo will give the combined group global coverage.
ARRACO co-founder and CEO, Tom Roberts, commented: “We are delighted to announce this investment which will allow us to remain independent, continue our rapid growth trajectory and significantly extend our range of product desks.
“I’m particularly excited about establishing two new international offices in Singapore and Houston, from which we will be able to provide global coverage for our clients and improve liquidity in Asia and the US.
Commenting on working with YFM, Tom continued: “ARRACO is very much a people business and relationships are very important to us – as soon as we met the team at YFM, we really liked them and knew they were the right fit for us.
“We share a similar culture, with ESG at the core of both businesses, and we like the fact they have national coverage and understand regional businesses. We were looking for supportive investors to work alongside us as we grow the business and YFM have a great track record in the market.”
David Wrench, investment director at YFM, added: “There’s no doubt that ARRACO is a business with huge potential – it has doubled revenue every year and benefits from being led by a dynamic team with real vision to drive forward and differentiate themselves in what has been a fairly stagnant market.
“We felt immediately drawn to their innovative business model with a young, ambitious team of multi-lingual brokers focused on building strong client relationships.
“As we had tangential experience supporting a global aviation broking provider expand internationally, we felt that we understood ARRACO’s growth journey and could add real value.”
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