UK “challenger” wealth manager Netwealth has completed its fourth round of fundraising with total investment now standing at £38m ($52.5m, €44.6m).
Stuart Rose, former boss of Marks and Spencer, joined the funding round with a “significant majority” of the largest existing shareholders, also following their previous investments.
Michael Spencer, founder of Icap, who previously invested £5m in 2019, has also exercised his option to commit a further £5m, taking the latest additional funding to £11.3m.
The proceeds “will be used to support continued organic growth and further investments in technology”.
Netwealth is “also considering potential opportunities for growth via acquisition of suitable IFA businesses”.
‘Recast the industry’
Charlotte Ransom, chief executive of Netwealth, 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“Our vision remains clear: to recast a wealth management industry that for too long has relied on opaque fees and outdated service models.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.”
Netwealth was launched in May 2016 by Ransom, a former partner at Goldman Sachs, and chief operating officer Thomas Salter, a former managing director at JP Morgan.