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Widows and City firms pump £12.5m into Inter-Alliance

IFA group Inter-Alliance is set to get £12.5m-worth of funding from Scottish Widows and a group of City institutions.

Scottish Widows is planning to invest £4.3m in the group, taking a 9.87 per cent stake in the business, pricing the company at £43m.

It is the fourth product provider to invest in the group and follows in the footsteps of Norwich Union, which holds a 6.04 per cent stake, Friends Provident with 3.5 per cent and Skandia with 2.25 per cent.

City institutions placing £8.2m with the IFA include fund managers Gartmore and Merrill Lynch, both of which are existing shareholders.

Inter-Alliance raised £32m from various sources in 2002.

Inter-Alliance says it plans to use the money to fund services for its 1,200 RIs to develop its non-regulated and mortgage businesses and to continue its acquisitions programme.

Scottish Widows intermediary and partnership director Robert Wyllie says: “Inter-Alliance has clearly had a number of challenges to face up to in the last couple of years but we feel very strongly that they should be one of the winners in the future landscape of financial services and we think now is an opportunistic time to invest.”

Inter-Alliance chairman and chief executive Keith Carby says: “Inter-Alliance will break even in 2003 and we are aiming to be in pro-fit by 2004. It is going to be a challenging time but only the financially strong will survive and we will remain fully independent.”

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