View more on these topics

AFH Financial raises £1.9m to fund further acquisitions

AFH Financial has raised £1.9m from investors through an unsecured loan note issue which it plans to use to fund acquisitions of small and medium-sized advice businesses in new locations.

In November, the West Midlands-based consolidator published its 2015 business plan, revealing the firm’s ambition to expand into London and South-east.

The loan notes pay lenders 7.5 per cent a year and have a redemption date of 12 December 2018. On redemption, noteholders will be able to purchase 200 new ordinary shares, at £2 a share, for every £1,000 of notes subscribed for.

AFH Financial chief executive officer Alan Hudson says: “The funds will be utilised to accelerate AFH’s stated strategy of acquisitive growth. Selective acquisitions include both small and medium sized IFA businesses that are located outside of AFH’s traditional core geographical locations and seeking the benefits of being part of a larger organisation.

“With increasing funds under management AFH remains well-placed on becoming a leading UK financial planning-led wealth manager.

“Our ability to raise additional funding through the issue of these notes will facilitate the board’s ability to enhance earnings attributable to shareholders from future acquisitions whilst maintaining gearing, all of which is unsecured, at a conservative level.”

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment

    Close

    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm

    Email: customerservices@moneymarketing.com