Entwistle's Scoban stores £25m war chest for buys

New private bank Scoban is planning to earmark £25 million to build an investment division by acquiring a number of asset management businesses.

Chief executive Ray Entwistle, former chairman of Adam & Co, said if the firm’s next round of fund raising was successful and the team decides to go ahead with the venture, the private bank will build a dedicated investment capability.

‘I think the kind of businesses we are looking at and talking to are likely to be fairly senior people. Those who appreciate what service means to clients as well as performance,’ he said. ‘The personnel involved would be just as important as the business.’

His comments follow the team’s decision to embark on a second round of fund raising to bring the £3.3 million in capital already amassed up to between £8 million and £10 million, to provide the bank with one year’s cashflow. They hope this will be achieved through a share prospectus, which is being sent out to 1,000 potential investors this month.

The bank has already received support from 150 wealthy individuals, but Entwistle said that despite a positive reception from institutions, they had been less quick to commit cash to the project.

‘We think institutions are still suffering from 2008 and some are replacing their capital base and looking very carefully at any investment,’ he said.

To attract institutional support and offer a potential exit route, Entwistle said the team was considering an AIM listing. ‘We are thinking about an AIM listing later down the line, as liquidity is important to people,’ he said.

If the firm is able to raise between £8 million and £10 million, Entwistle anticipates a further £75 million in capital would be necessary to build the bank and investment management division over the medium term.

‘After raising the money we will not be prepared to spend this unless we are confident that we can raise £50 million for the bank and £25 million for purchasing investment management businesses. We would not spend it unless we are confident of the capital available to really launch the bank,’ he said.

Entwistle is planning to initially launch branches in London and Edinburgh and said Scoban would take a traditional approach to private banking, which would not be product-led.