A Financial services firm is escalating its nationwide hunt for acquisitions after securing £500,000 in new investment.
Newcastle-headquartered Moneygate Group Ltd brings together independent financial advice and investment management through its own technology platform, and advises on around £2.6bn of client funds, working in both consumer and corporate markets.
The company – sponsors of Newcastle Falcons – operates nationwide with 145 independent financial advisors based around the country, alongside 62 staff at its Newcastle base, and the company has been backed by investment capital from the US and UK since its launch in 2008.
Now the firm is targeting rapid growth through acquisition, and it has moved to broaden its range of investors by securing the six-figure investment capital injection from the Finance For Business North East Growth Fund, managed by NEL Fund Managers.
As well as growing organically, Moneygate’s dedicated acquisitions team has executed a targeted strategy over the last five years, acquiring 26 businesses during that period, and it is looking to absorb another ten firms per year as part of its future evolution.
The firm’s current annual turnover is nearing £20m, but it is aiming to more than treble this to around £65m to £70m before the end of the decade.
Lee Hartley, chief executive officer at Moneygate Group Ltd, says: “We’ve reached our current position despite never having operated in anything close to a buoyant economy, but we’re already noticing the difference that the recent improvement in economic conditions is making and can see a wide range of new opportunities that will add to what we’re already doing.
“To maximise Moneygate’s potential, we’re looking to acquire another ten firms a year, which will in turn lead to new jobs being created and our turnover increasing significantly, and our acquisitions team has a strong pipeline of prospects from which we can choose the best options to take.
“The proprietary technology platform we use makes it simple to identify the most suitable advisor for each individual customer, and with all our staff working through it, it gives us huge advantages in terms of operational efficiency and communications.
“We wanted to widen our capital base and to include some North East-based investors, and NEL fit in well with those we already have on board. The team was easy to deal with and the process for bringing the investment in was simple enough to allow us to stay focused on running the business.”
David Thomas, investment executive at NEL Fund Managers, added: “Moneygate have built a thriving national business in the teeth of the fiercest recession for decades, and the management team has a clear, carefully-developed strategy to substantially strengthen its position right across the UK from a North East base.”