Netwealth Completes £10 Million Round of Investment

Today we announce the completion of a third round of fundraising with new commitments of £10 million.

  • The funding round was led by businessman Michael Spencer, with a £5 million investment.
  • The remaining £5 million is split between a small number of new investors, as well as 75% of existing shareholders who followed their previous investments.
  • Total investment now reaches £26.5m across three rounds.

Netwealth was founded in 2015 by CEO Charlotte Ransom, a former partner at Goldman Sachs, and COO Thomas Salter, a former managing director at JP Morgan, to deliver a more transparent, cost-effective and superior service to affluent and high net worth clients.

The proceeds from the latest fundraising will principally be used for further investment in staff and technology.

Our other high-profile backers include Edward Bonham Carter, Vice Chairman of Jupiter Fund Management, Harvey McGrath, former Chairman of Man Group and Prudential, and Bruce Carnegie-Brown, Vice-Chairman of Santander and Chairman of Lloyds of London.

Our service focuses on retaining the most important aspects of traditional wealth management, including access to bespoke advice, while driving dramatic fee savings versus incumbents.

The business has made strong progress since launch, with clients moving investments from traditional wealth managers, as well as from cash and DIY platforms. Despite the £50k minimum investment size, average client assets were approximately £400,000 as of 1 September 2019.

The unique Netwealth Network, enabling a total of eight family members or friends to enjoy economies of scale through lower collective fees, while remaining independent, has played an important role in driving the business’ growth with 70% of clients part of a network.

“The latest investment, once again from such well respected and informed investors, is another positive endorsement of Netwealth’s vision and what we have achieved to date,” said Charlotte Ransom.

“Until now, wealth managers have been able to get away with putting their interests first, through high and opaque fees coupled with an outdated service. We are changing this reality. Our modern, client-centric and cost-effective business provides clients with a genuine alternative to investing with the incumbents.”

We completed our first and second funding rounds in 2016 and 2017 respectively.

Please remember that when investing your capital is at risk.

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