Moneygate receives capital injection
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Moneygate Group has unveiled a three-year expansion plan after securing a significant capital injection from MGT Capital Investments (UK), a subsidiary of Amex-listed MGT Capital Investments Inc.
The deal sees MGT (UK) provide a substantial facility to the company specifically for growth and acquisitions projects. Although the ultimate size of the funding line remains undisclosed, Moneygate says the deal makes it one of the most highly funded IFA businesses in the UK market.
This investment will be used to increase its IFA network from 75 to 750 advisors over the next four years and provides Moneygate with the funds to expand its core business within these objectives.
MGT Capital Investments Inc. is a US technology holding company that focuses on investments in the global healthcare and information technology market. Investors were looking for a financial advice firm with high technology uptake that offered large growth potential.
The Moneygate Group restructured in 2008, refocusing its activities into the more robust IFA sector whilst closing its dedicated mortgage channel. The group now provides financial advice across every product set, from pensions and investments through to protection and general insurance.
Lee Hartleym chief executive of Moneygate, says: “The MGT deal was planned over a six month period and represents a catalyst that accelerates our expansion across 2010 and through the implementation of RDR.
“We have a clear mandate to grow the business by attracting more top quality advisers into the company. This investment will act as the platform we require to establish ourselves as the number one nationally branded IFA for the mass affluent sector.”
MGT approached Moneygate in May 2009 as part of a diversification strategy and the deal was concluded in October of the same year. Both parties have now finalised the business plan that will see the company make major moves forward.
