Powerwrap announces $19m capital raising

29 June 2017
| By Malavika |
image
image
expand image

Wealth management platform provider, Powerwrap, has announced a further $19.4 million in capital raising from existing and new investors to aid in its next phase of growth.

The platform provider said the capital raising, through a private placement with pro-rata priority to existing shareholders and an institutional placement, closed oversubscribed, as it received support from existing shareholders and new private and institutional investors.

The firm explored other options but decided on the capital raising to give itself flexibility for the future as the unlisted firm considered an initial public offering (IPO) to list on the Australian Securities Exchange (ASX) later this calendar year.

Powerwrap chair, Matthew Driscoll, said the company had undergone organisational and operational restructure over the past few months, along with the planned introduction of a new digital wealth management interface known as The Hive.

“We are pleased to have this confirmation of our strategic direction as we seek to redefine the wealth management platform landscape,” he said.

Conducted by lead manager, Baillieu Holst, the capital raising was one of several options explored by the board. Over the past nine months, shareholders also explored the possibility of a trade sale process also conducted through corporate adviser, 333 Capital. Potential buyers expressed interest, which was narrowed down to two proposals.

The firm also considered an investor process, capital raising as well as considering an IPO.

Driscoll said Powerwrap, which has approximately $6.5 billion in funds under administration (FUA), was planning to expand the board to include independent directors as the company aimed for further growth.

Powerwrap launched a new separately managed account (SMA) solution in September last year, which replaced daily portfolio rebalancing with real-time.

 

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest news and developments in wealth management industry

MARKET INSIGHTS

So we are now underwriting criminal scams?...

2 weeks 6 days ago

Glad to see the back of you Steve. You made financial more expensive, not more affordable as you claim, and presided ...

3 weeks 3 days ago

Completely agree Peter. The definition of 'significant change is circumstances relevant to the scope of the advice' is s...

2 months 3 weeks ago

ASIC has taken action against a Queensland adviser who was sentenced last May for misappropriating $1.8 million from his clients....

2 weeks 2 days ago

AMP is to launch a digital advice service to provide retirement advice to members of its AMP Super Fund, in partnership with Bravura Solutions. ...

2 weeks 2 days ago

A former Insignia Financial C-suite exec has taken on a leadership role at MUFG Retirement Solutions as it announces chief executive Dee McGrath will depart after six yea...

2 weeks 3 days ago

TOP PERFORMING FUNDS