Wealth Manager - the site for professional investment managers

Register free for our breaking news email alerts with analysis and cutting edge commentary from our award winning team. Registration only takes a minute.

Goldman Sachs takes Nutmeg stake in £45m fundraising

4 Comments
Goldman Sachs takes Nutmeg stake in £45m fundraising

Goldman Sachs has taken a stake in robo-adviser Nutmeg as the company raised £45 million to fund an international expansion. 

Nutmeg's latest funding round was jointly led by Goldman Sachs' Principal Strategic Investments arm and Convoy, Hong Kong's largest listed firm of financial advisers. 

The company said the total was the largest ever for a single funding round by a digital wealth manager in Europe, and would be used to bankroll an expansion into Asia.

Goldmans partner Rana Yared will join Nutmeg's board. She said:  'Nutmeg has already established itself as one of the fastest growing wealth managers in the UK.

'We are excited to fuel further growth and innovation through our investment and to support management in their vision of leveraging technology to broaden access to world-class investment solutions.' 

Nutmeg had previously raised a total of £71 million from investors, including Convoy, Schroders and Taipei Fubon Bank (TFB).

The robo-adviser, now led by chief executive Martin Stead (pictured), has been putting that money to use, increasing advertising and launching new services such as its 10-strong socially responsible range rolled out in November last year. 

The business, launched in 2011, now has over £1.5 billion of assets under management. However, its ability to reach profitability has been questioned over the years by sceptics. 

Its last results showed that Nutmeg's losses rose by nearly a third to £12.4 million. The firm said this was due to rising regulatory costs and continued investment in the business. 

Revenue was up by 76.9% from £2.6 million to £4.6 million, but operating expenses rose by 42% to £16.9 million, up from £11.9 million, over the period.

Stead said: 'This is a vote of confidence in our team, investment proposition and track record, and marks Nutmeg’s transition from start-up to scale-up.

'We look forward to Goldman Sachs’ support and to exploring commercial collaboration opportunities that further accelerate our growth plans.

'This funding also enables us to expand internationally, with our plug-and-play B2B expansion model, which leverages both our technology and investment capabilities, developed in this highly respected FCA-regulated market. We plan to launch with existing partners Convoy in Hong Kong this year.'

As part of the deal, which is subject to approval by the Financial Conduct Authority, Goldman Sachs partner Rana Yared will join Nutmeg's board. 

 

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.
Citywire TV
Play Hugh Young: the buck stops with me on Asia recovery

Hugh Young: the buck stops with me on Asia recovery

The Veteran Asia Pacific fund manager discusses how he is going to improve the performance of Aberdeen Standard Asia Focus and the other investment trusts run by his team.

Play Tim Steer: fund managers will have to get 'stuck in'

Tim Steer: fund managers will have to get 'stuck in'

The second part of our film with former Artemis and New Star fund manager Tim Steer looks at how his profession has evolved over the past two decades.

2 Comments Play Tim Steer: how to spot a stock disaster coming

Tim Steer: how to spot a stock disaster coming

The former Citywire AAA-rated fund manager has written a book on 22 stock disasters and how forensic examination of annual reports could have spotted them coming.

Read More
Your Business: Cover Star Club

Profile: 'Growing pains' - inside a boutique profit battle

2 Comments Profile: 'Growing pains' - inside a boutique profit battle

South London-based Fowler Drew has moved back into the black after spending a couple of years in the red

Wealth Manager on Twitter