Towry raises £35 million of new equity
Palamon Capital Partners ("Palamon" or the "Firm") is pleased to announce that portfolio company Towry Group Limited ("Towry" or the "Company") has raised £35 million of new equity to provide additional funding for the Company's expansion plans. The investment was made by two Palamon co-investors, AlpInvest Partners B.V. and Honeywell Capital Management LLC.
The new Retail Distribution Review (RDR) regulation, effective from 1 January 2013, is driving changes in the UK wealth advice sector and providing significant opportunities for Towry to accelerate acquisitions and adviser recruitment. 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 £250 million to £4.6 billion. Today, the Company has annual revenue of over £80 million and provides fee-based wealth advice and discretionary asset fund management services to over 25,000 clients.
The successful new fundraising complements the recent £47.5 million of financing lines secured earlier in the year from Macquarie Bank and Royal Bank of Scotland.
Andrew Fisher, Chief Executive of Towry said, "We have exciting expansion plans as we see enormous opportunities arising from the RDR. The new capital raised gives us a solid base from which to execute our plans for further growth.".
Gerald Corbett, Chairman of Towry added, "With the strength of Towry's offering to its clients and its experienced management team, I am certain that it will successfully implement its expansion plans and generate excellent returns. We welcome AlpInvest and Honeywell Capital as shareholders and appreciate their confidence in our Company.".
Daan Knottenbelt, Partner at Palamon, commented, "The support from such high calibre institutional investors is a testament to the strength of Towry's business model, its track record and its tremendous growth potential. We are delighted to continue our work with Towry's management as they continue to expand their presence in the UK wealth management sector."
