European Wealth has completed the reverse takeover of its parent group and this morning began trading on AIM.
Last month, the wealth management firm announced it was to acquire its listed parent EW Group for £7.1 million in a move which it believed give it a more efficient structure ‘through which to raise growth capital’.
The company has been renamed European Wealth Group Limited, headed by chief executive Rod Gentry (pictured), and comes to market with a market cap of £16.6 million.
EW Group was founded in 2004 as a private equity vehicle. In April 2012 it acquired a 33% stake in European Wealth, which it subsequently increased to 49% in March 2013.
Since the original investment in 2012, European Wealth has grown its funds under management from £150 million to more than £710 million.
Executive chairman John Morton said: ‘We are delighted to have completed the transaction. As a business, European Wealth was conceived, structured and developed in a post RDR landscape and as a consequence has been able to experience significant growth, with a four fold increase in funds under management and influence over the last two years. The improved access to capital markets that the AIM listing now brings will certainly help maintain that momentum.
‘We envisage an important part of our growth continuing to come organically as a result of the service-centric approach we bring to clients and staff. We also look forward to further acquisitive growth through the successfully integration into the group of small and medium sized wealth management and financial planning firms that are being unduly impacted by RDR and the increased regulatory and compliance requirements being placed upon them.’