Mam Funds is looking to raise up to £20m new equity and has strengthened its existing management team with the appointment of Gervais Williams as managing director.
Williams spent 17 years with Gartmore, where as head of UK small companies, he was responsible for managing £900m of assets under management.
Mam has also appointed Ian Dighé as executive chairman and Graham Hooper as distribution director. Hooper is currently a non-executive director of Liontrust but would expect to resign from this board on joining the Mam Funds board.
Meanwhile, Colin Rutherford will step down from the board of Mam Funds. Adrian Collins will also resign from the board on completion and a new independent director will be appointed in due course.
The extended strategy is expected to build on the existing platform together with a broadened product offering and strengthened marketing capability. The group aims to take advantage of opportunities presented by the Financial Services Authority’s retail distribution review, capitalise on Britain’s demographic shifts and develop strategies to distribute through new entrants.
It therefore plans to raise up to £20m of new equity through a placing of ordinary shares at 33p per share. The placing proceeds will be applied to redeem all the existing preference shares issued by the company together with accrued interest. It will be used to repay all outstanding bank debt and provide additional working capital. Of the total amount of £20m, the new management team expect to invest £3m from their own personal resources.
The plans are subject to finalisation, shareholder approval, consent of Lloyds Banking Group, regulatory consents and completion of fundraising.