Wealth consolidator AFH Financial has secured £15m in order to support its acquisitions activities.
The money has been raised through placing convertible unsecured loan stock (CULS), with the initial conversion price being 420 pence.
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The loan carries a 4% yearly interest rate and is due to mature in 2024.
“CULS Holders will be able to convert their CULS into Ordinary Shares on a quarterly basis throughout the life of the CULS commencing on 31 December 2019 with the final conversion date being on 30 June 2024”, AFH noted.
Apart from funding acquisitions, the capital raised will also be utilised for general corporate needs.
Commenting on the development, AFH CEO Alan Hudson said: “This successful fundraise emphasises the consistent support we have had from institutional investors as we work towards our vision of building AFH into the leading financial planning-led wealth management firm in the UK.”
AFH has been on a buying spree lately.
Last December, AFH made the largest-ever acquisition in its history by buying Hull-based advisory firm CTL Three and its subsidiaries in a deal worth up to £10m. The acquired business had more than £530m in funds under management.
Earlier this year, AFH added over £100m in funds under management to its portfolio through the purchase of West Midlands-based Hayburn Rock Group.
