Renaissance Asset Finance (RAF) has been acquired by private bank Arbuthnot Latham, a subsidiary of the Arbuthnot Banking Group.

Subject to regulatory approval, the acquisition is expected to be completed in the early part of the second quarter of 2017.

Arbuthnot will pay the consideration in four stages in cash from its current resources, with the first paid at completion and equal to RAF’s net assets at the time. As of 30th November 2016, RAF had customer assets of £68m (€80.6m) and net assets of £1.6m.

The group also said that the remaining three amounts will be made annually based on RAF’s profitability, and will be limited to £6.5m each.

In the twelve months to 30th June, RAF achieved pre-tax profit of £2.4m, £1.75m of which was a ‘one off income amount’.

Ian Henderson, chief executive of Arbuthnot Latham, said: “The acquisition of RAF will fit well alongside our growing private and commercial banking units and I welcome the team from RAF into the group. I look forward to working with them in the future.”