New private bank Scoban is entering its next stage of development after successfully raising another £5 million after its second round of fund raising.
The fledgling Scottish private bank, which has been set up by former Adam & Co chairman Ray Entwistle, will now build its operational and regulatory structure, and consider taking up premises and making further hires.
The move comes after the bank received over £5 million worth of offers to subscribe for its share and sits alongside £1.4 million which was raised in the first capital raising. The management team said it is also open to further commitments over the next two months.
The shareholder base is expected to increase to over 170 individuals when the fund raising period officially completes, with Scoban set to appoint investment banking and securities firm Espirito Santo as its adviser to support future development.
Commenting on the second fund raising, Entwistle said he had been 'overwhelmed by the support' received from investors despite the turbulent market environment.
'It is a testament of their desire for a return to traditional banking services and for a financial institution that clearly identifies with families, especially where those families can also be shareholders,' he added.
Back in March, Entwistle told Wealth Manager he was planning to earmark £25 million to build an investment division by acquiring a number of asset management businesses, anticipating that a further £75 million in capital would be necessary to build the bank and investment management division over the medium term.
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.