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Bankhall co-founder to raise £50m to expand new business

Bankhall co-founder to raise £50m to expand new business

Paul Hogarth, co-founder and former chief executive of Bankhall Investment Management, has announced he intends to float his latest venture Tatton Asset Management on the London Stock Exchange.

The placing will raise about £10m (before expenses) for the company and about £41.6m (before expenses) for selling shareholders by way of a conditional placing of ordinary shares.

The group was founded in 2007 by current chief executive Mr Hogarth to provide a range of services to directly authorised financial advisers encompassing discretionary fund management, regulatory and compliance services and mortgage services.

The business consists of Tatton Capital Limited, a discretionary portfolio management service which launched in early 2013 and as of 2 June 2017 had more than £4bn of assets under management. 

Paradigm Partners Limited, an independent financial services business providing support services for 353 directly authorised IFAs, is also part of the business as well as Paradigm Mortgage Services.

Paradigm Mortgage Services is a mortgage distributor business providing mortgage and related support services to a membership of 1,034 directly authorised IFAs, employing about 3,000 regulated advisers.

According to bosses, the main drivers of revenue growth for the business moving forward is expected to be growth in AUM for the DFM business and a larger membership pool of IFAs. 

Mr Hogarth said the business is highly scalable and there are significant continuing cross-selling opportunities between the three subsidiaries.

He said: "At the centre of our business philosophy has been always to champion the directly authorised IFA sector and provide services that help support them and the needs of their retail clients. 

“We believe that there is a continuing and vital requirement to offer a value for money, low cost service proposition for the mass affluent market place serviced by the IFA sector. 

“As such, the group represents a new model asset manager that is exploiting such opportunities and challenging the existing off-platform, traditional incumbents whose discretionary fund management services have normally been reserved only for the very wealthy.

"The initial public offering (IPO) of the Tatton Asset Management plc marks a very important and exciting milestone in the development of the group, allowing us to build our market profile further, reward our staff and other stakeholders, and provide access to the capital markets when needed in the future.

"I look forward to working with our new institutional shareholders in continuing to build our business further."

emma.hughes@ft.com