Hong Kong IFA firm buys stake in Nutmeg for £24m

Added 14th November 2016

Convoy, one of the largest IFA firms in Hong Kong, has paid £24m ($30.2m, €27.8m) for a stake in UK investment platform Nutmeg, in a move praised by UK chancellor Philip Hammond.

Hong Kong IFA firm buys stake in Nutmeg for £24m

Martin Stead, chief executive of Nutmeg, described the investment as cementing “our position as Europe’s leading digital wealth manager”.

The purchase

Split into two tranches, Convoy paid nearly £10.2m for the first tranche of shares, and £13.8m for the second tranche.

Following the acquisition, Convoy will hold approximately 17.16% of Nutmeg.

Nutmeg’s existing backers — including Schroders, Balderton Capital, Pentech, Armada Investment Group, and Nigel Wray — also participated in the fund raising which netted Nutmeg £30m.

Schroders confirmed to International Adviser that the company’s own holding had not changed following the Convoy purchase.

Stead said: “This new funding will help us to accelerate our already strong pace of growth. Nutmeg now manages over half a billion pounds for over 20,000 customers, and we are now four times the size we were in 2014, the time of our last fundraise.”

Fintech forward

Hammond said: “Britain is leading the way forward in global Fintech. It’s an industry that is going from strength to strength and today’s announcement confirms the UK’s position as the global Fintech capital.

“This is another international investment into a home-grown UK company, demonstrating the UK is open for business‎.”

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About Author

Kirsten Hastings

Senior Reporter

Kirsten is a senior reporter for International Adviser, covering global news stories about the financial services industry. She joined Last Word Media in October 2015 after two years working as a reporter covering the staffing and recruitment industry. Kirsten has a Masters in Financial Journalism from the University of Stirling. 

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