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Palamon’s Towry secures £35m equity from AlpInvest, Honeywell

19 Dec 2012

Towry, the UK wealth manager with £4.6bn of assets under management backed by mid-market private equity firm Palamon Capital Partners, has raised £35m of new equity to provide additional funding for the company’s expansion plans.

The investment was made by two Palamon co-investors, AlpInvest Partners and Honeywell Capital Management, the firm said in a statement released today.

Towry expects to benefit from new regulation coming into force in January that will ban rebates from fund managers to wealth managers and financial advisors whose clients invest in their products.

The new Retail Distribution Review (RDR) regulation will provide significant opportunities for Towry to accelerate acquisitions and adviser recruitment, it said.

Towry has made 10 acquisitions since Palamon’s initial investment in 2003 and grown its adviser base from 13 to 144 and its assets under management from £250m to £4.6bn.

Today, the company has annual revenue of more than £80m and provides fee-based wealth advice and discretionary asset fund management services to more than 25,000 clients.

“We have exciting expansion plans as we see enormous opportunities arising from the RDR,” Andrew Fisher, Chief Executive of Towry said in the statement.

“The new capital raised gives us a solid base from which to execute our plans for further growth.”

The new fundraising complements the recent £47.5m of financing lines secured earlier in the year from Macquarie Bank and Royal Bank of Scotland.

Towry is understood to be looking at an initial public offering by the end of 2013 after shelving plans to list last year due to market volatility.

Towry does not charge commission from funds to which it invests clients’ money, and expects to pick up business from advisors that shut up shop in the wake of the new rules.

Copyright © 2012 AltAssets

Palamon’s Towry secures £35m equity from AlpInvest, Honeywell

Towry, the UK wealth manager with £4.6bn of assets under management backed by mid-market private equity firm Palamon Capital Partners, has raised £35m of new equity to provide additional funding for the company’s expansion plans.

The investment was made by two Palamon co-investors, AlpInvest Partners and Honeywell Capital Management, the firm said in a statement released today.

Towry expects to benefit from new regulation coming into force in January that will ban rebates from fund managers to wealth managers and financial advisors whose clients invest in their products.

The new Retail Distribution Review (RDR) regulation will provide significant opportunities for Towry to accelerate acquisitions and adviser recruitment, it said.

Towry has made 10 acquisitions since Palamon’s initial investment in 2003 and grown its adviser base from 13 to 144 and its assets under management from £250m to £4.6bn.

Today, the company has annual revenue of more than £80m and provides fee-based wealth advice and discretionary asset fund management services to more than 25,000 clients.

“We have exciting expansion plans as we see enormous opportunities arising from the RDR,” Andrew Fisher, Chief Executive of Towry said in the statement.

“The new capital raised gives us a solid base from which to execute our plans for further growth.”

The new fundraising complements the recent £47.5m of financing lines secured earlier in the year from Macquarie Bank and Royal Bank of Scotland.

Towry is understood to be looking at an initial public offering by the end of 2013 after shelving plans to list last year due to market volatility.

Towry does not charge commission from funds to which it invests clients’ money, and expects to pick up business from advisors that shut up shop in the wake of the new rules.

Copyright © 2012 AltAssets

 

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