Powerwrap announces $19m capital raising
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
Malavika Santhebennur
Recommended for you
Unregistered managed investment scheme operator Chris Marco has been sentenced after being found guilty of 43 fraud charges, receiving the highest sentence imposed by an Australian court regarding an ASIC criminal investigation.
ASIC has cancelled the AFSL of Sydney-based Arrumar Private after it failed to comply with the conditions of its licence.
Two investment advisory research houses have announced a merger to form a combined entity under the name Delta Portfolios.
The top five licensees are demonstrating a “strong recovery” from losses in the first half of the year, and the gap is narrowing between their respective adviser numbers.
