Netwealth, the money manager backed by a string of leading City figures, has secured its fourth round of fundraising with total investment reaching £38m.
The self-proclaimed challenger wealth manager has completed a £11.3m round which included a cash injection from former M&S boss Stuart Rose.
ICAP founder Michael Spencer who previously invested £5m in 2019 has committed a further £5m. Other backers include former chairman of Man Group Harvey McGrath and Bruce Carnegie-Brown, vice chair of Santander and chairman of Lloyd’s of London.
Former Jupiter boss Edward Bonham Carter was appointed chairman of the wealth manager in January.
Netwealth is the brainchild of former investment bankers Charlotte Ransom and Thomas Salter and has attracted a swathe of high-profile backers with its promise of a more transparent and cost-effective service.
Traditional wealth managers tend to charge a fee of two per cent or more while Netwealth charges less than one per cent.
The company said it would use the proceeds from the round to support organic growth and invest further in technology. It also indicated it was looking at acquiring IFA businesses as it grows.
It has already enjoyed rapid growth with an average client portfolio size of £475,000 as of 16 March 2021.
“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,” chief executive Charlotte Ransom said.
“Our vision remains clear: to recast a wealth management industry that for too long has relied on opaque fees and outdated service models.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.”