A platform specialising in tax efficent investments with a focus on the UK advised market place has launched.
GrowthInvest is designed to provide an environment where advisers can help clients investigate and invest in a range of single companies, available alongside a growing number of fund managed portfolios.
The platform has been working with a group of financial advisers and wealth managers, but its management believes that there is a wider audience of investors who could benefit from the advantages of earlier-stage growth investing.
During the last 12 months it has been working closely with the adviser market to develop the company’s new offering and strategy.
According to GrowthInvest, the pensions cap on annual and lifetime allowances and a low interest rate environment mean this is a source of growth investment which advisers should be recommending to clients.
Daniel Rodwell, managing director at GrowthInvest said: “The alternative finance sector is on the brink of considerable change.
"We’re proud to be leading the charge and are relaunching today as GrowthInvest, to reflect our broader range of business activities and our new company ethos. Importantly, we’ve listened to the feedback and now place the needs of the adviser at the heart of everything we do."
He said the past couple of years has seen increasing interest in tax efficient investment and the fast-growing alternative finance sector.
Mr Rodwell attributed this to tighter controls over pensions and a "lack of potential real returns from listed equities and savings products".
“We believe that this, coupled with the rise of D2C crowdfunding platforms, and now the likely trajectory of the UK economy post-Brexit, potentially leaves advisers in a difficult position with their more affluent clients. We aim to provide a simple solution to their requirements in this increasingly important area."
Alan Solomons, director at London-based Alpha Investments and Financial Planning said: "I suppose the argument is that EIS has its place because you get the same tax relief, and it hangs on whether it makes sense for the investor to take on the additional risk.
"The next stage is the IFA has an exposure because not all professional indemnity insurers will cover you and if they do they may require a larger excess - more funding to humour the FCA."