Today we announce the completion of a fourth round of fundraising with total investment now standing at £38 million.
Stuart Rose joined the funding round – his first investment in Netwealth – with a significant majority of the largest existing shareholders also following their previous investments.
Our other high-profile backers include Edward Bonham Carter, former Group CEO and 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.
Michael Spencer, founder of ICAP, who previously invested £5 million as part of a £10 million funding round in 2019, has also exercised his option to commit a further £5 million, taking the latest additional funding to £11.3 million.
Netwealth was launched in the market in May 2016 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 wealth management service.
Our service focuses on retaining the most important aspects of traditional wealth management, including access to bespoke financial advice, while dramatically improving the client experience through modern technology and driving significant fee savings versus incumbents.
The proceeds from the funding round will be used to support continued organic growth and further investments in technology. We are also considering potential opportunities for growth via acquisition of suitable IFA businesses.
We have enjoyed strong momentum since launching, with clients moving investments from traditional wealth managers, as well as from cash and DIY platforms. Average client portfolio sizes have grown to £466,000 as of end March 2021 compared to £421,000 at end March 2020.
Charlotte Ransom, CEO, said: “I am delighted to welcome another highly-respected investor in Stuart Rose to our current group of backers. Michael Spencer doubling his initial investment, and the consistency of support from our other shareholders in this round, shows confidence in our model and recognises the strong progress to date.”
“Our vision remains clear: to recast a wealth management industry that for too long has relied on opaque fees and outdated service models. We are demonstrably changing the status quo through a modern, accessible and cost-effective service with no compromise on quality and value.”
Please note, the value of your investments can go down as well as up.