Institutional investors BlackRock, Merian Chrysalis Investment Company and Legg Mason have backed Sipp provider Embark Group with a £39.4m capital injection.
The core of the capital is funded by the three fund giants and is aimed at helping Embark Group meet demand for its digital retirement and platform services.
Existing shareholders will also support the capital raising. In addition to early stage investor New Star Investment Trust, the group now has a portfolio of high quality ‘cornerstone’ long-term investors.
Each investor holds a material minority position, and accordingly will not hold seats on its independent board of directors.
Embark Group chief executive Phil Smith says: “The capital raising represents a significant step in our ambition, capacity and capability to be a major force in digitally led retirement and savings sector. Capital is central for continued steady growth but partnering with major global players who have a fully aligned vision of the future requirements across the financial advisory, direct and workplace channels, is of huge benefit.”
BlackRock head of UK Sarah Melvin adds: “The UK retail distribution landscape is evolving rapidly, with more individuals taking greater responsibility for their financial future and retirement needs. This trend requires our clients to have access to high quality, technology-enabled investment solutions. Our partnership with Embark Group allows us to meet these evolving needs of our clients and their customers in this critically important UK market.”