The merger, which is subject to regulatory approval that could take as long as six months, will create a new entity, the FM Group, with some $200m (£120m, €145.5m) in assets under advice, according to the principals of Fraser Mackinlay and Caratfin, Martin Treanor and Derek Melly.
Currently the two companies employ around 30 people.
Treanor and Melly met and came to know one another and their respective businesses over the last few years while serving on the board of the Cyprus International Financial Services Association, according to Melly.
They first entered into discussions about a possible merger because of a shared belief that the growing regulatory environment across the world was making it more difficult for small and medium-sized advisory firms to survive, Melly said.
Meantime, Cyprus is continuing to deal with the aftermath of a financial crisis in 2012/2013 that has left it in recession, with little immediate hope of a return to good times, Treanor, whose title will be group managing director of the newly-formed company, noted.
“Caratfin have a very strong presence in Africa, and do a lot of their business outside of Cyprus, although they have clients in Cyprus, too,” he added.
“Among the things Fraser Mackinlay brings to the party, meanwhile, is its MIFID licence, which we got towards the end of 2011, and which Caratfin doesn’t have.
“So our plan is to broaden our range of services overall together, while expanding our operations, initially into France and Italy, where we plan to open offices in the next few months.
“Down the road, we’re looking to expand further into Africa, and eventually, into Southeast Asia and the Middle East as well.”
In Cyprus, Fraser Mackinlay is based in Limmasol, while Caratfin has its offices in Nicosia.
