Manchester-based Arrow Global Group, the European debt investor and asset manager, said on Wednesday it agreed to a increased cash takeover offer from London-based private equity firm TDR Capital that valued Arrow at £563 million.

Arrow Global shareholders would receive 307.5p in cash for each share they hold, an increase from TDR’s fourth proposal for a 305p per share bid last month.

Arrow chairman Jonathan Bloomer said: “… the Arrow board has concluded that the acquisition, which offers certain cash value to Arrow’s shareholders, is in the best interests of Arrow’s shareholders.

“I am proud to have been chair of Arrow for the last seven years and it has been a pleasure to work with so many dedicated individuals who have made Arrow a leading European investor and asset manager in the non-performing and non-core assets sector.

“For now, it is business as usual, and I thank all our people for their continued dedication and hard work.”

Jonathan Rosen of TDR Capital LLP said: “Arrow is a company that we have followed for some time, and the company’s position as a clear market leader is due to the strength of the team they have built.

“We are excited to partner with them to accelerate their strategy to build a market leading fund management business by providing the investment and support needed, all of which we believe is better facilitated as a private company.”