Towry Law receives cash injection from US investors

US-based AMF has provided Towry Law with mezzanine financing, which is typically used to finance the expansion of existing companies.

AMF provides capital to wealth managers, institutional asset managers, alternative asset managers, and private equity firms that are seeking funding for recapitalisations, growth initiatives, management buy-outs, acquisition financing, owner liquidity and other strategic investment objectives.

Towry Law has acquired nine financial advisory firms since 2003 and following its recent acquisition of the UK operations of Edward Jones Limited, the UK subsidiary of the US-based intermediary, the Bracknell-based business now has more than 250 wealth advisers with around £5bn in assets under management or advice as of 31 December 2009.

Towry Law is privately owned by its principal shareholders which include Palamon Capital Partners, one of Europe's leading private equity firms, and Towry Law employees.

Hawkpoint Partners advised Towry Law on the financing.

Andrew Fisher, chief executive officer of Towry Law, said: "We were seeking to broaden our capital base as we continue to expand and grow, without giving up a significant equity position in the firm or sacrificing any control in the firm's governance.

"AMF's passive minority investment strategy, specialised asset management sector focus, and reputation made them an ideal partner for us.

"We are very pleased to have them as a strategic investor so we can benefit from their experience, financial flexibility and knowledge of our industry.

Rob Jakacki, chief investment officer of AMF, said: "Towry Law has a successful business model focused on providing high quality services to their clients through independent wealth advice and a proven track record in acquiring and integrating wealth advisory businesses under a talented management team.

"They are an important addition to the AMF portfolio of best in class investment firms."

Towry Law represents AMF's first investment in Europe.

Mr Jakacki said: "Given our strong capital position and global investment opportunities, we are aggressively expanding our presence in the UK and Europe by dedicating additional resources to the region.

"Our mezzanine financing for Towry Law is a great example of AMF's flexibility in structuring investments beyond our patented revenue sharing investments.

"This investment also reflects our ability to address specific investee company or market requirements while preserving AMF's investment philosophy of providing passive, minority risk-sharing capital to quality asset management firms."

In addition to the Towry Law financing, AMF closed several other major investments in December 2009 including a preferred equity investment in a private equity fund management company; a revenue sharing investment in a US.-based credit strategies hedge fund manager; and an equity financing in HighTower Advisors, a financial services company serving high net worth clients headquartered in Chicago.