Private bank Hampden & Co has completed a fresh capital raise, following what chief executive Graeme Hartop described as an ‘exceptional’ year.
While he was unable to disclose how much was raised via the share placing, he said the amount had surpassed expectations. It will be used to support future growth and further strengthen the balance sheet.
‘It is a very positive story that our business is growing,’ Hartop said.
‘[The money was raised] largely from existing shareholders, who are very supportive of what we are doing and they have a lot of confidence in the business we are building, as well as a small amount of new shareholders,’ he added.
Hampden, which launched in 2015 and is chaired by Ray Entwistle (pictured), has attracted a number of well-known shareholders from the UK wealth and fund management sectors. They include Standard Life Aberdeen small cap star Harry Nimmo, who together with his wife owned 1.6 million shares in October of this year.
Companies House filings indicate a share price of 7.5p, which would mean their collective stake equates to £120,000.
Standard Life Aberdeen’s head of strategy Gordon Neilly and senior investment manager Ed Beal also feature on the list, with respective stakes of around £21,500 and £10,800.
Brewin Dolphin’s former chief executive Jamie Matheson’s stake totals £15,000, while Brewin’s ex-head of investment management David McCorkell’s shareholding amounts to £22,500. Other ex-Brewin directors Henry Algeo and Ian Speke have respective stakes valued at £37,500 and £15,000.
Meanwhile, Impax Asset Management chairman Keith Falconer owns 574,000 shares, equating to £43,100. Graham Campbell, chief executive of Saracen Fund Managers, also features with a £15,000 shareholding.
Commenting on the rationale behind his investment, Campbell explained: ‘I felt there was a place for a bank that was small enough to care about their customers and was earnest about delivering a personal service. They have done just that.’
Garth Milne, who set up the team at Laing & Cruickshank, is a major shareholder with 4.7 million shares, worth £350,400, while Troy Income & Growth trust chairman David Warnock has a £15,000 stake.
Hartop, whose holding equates to £68,800, said Hampden has experienced significant growth across deposits and its loan book in 2017, with a number of clients moving their entire banking relationship over to the firm.
‘In both markets – London and Edinburgh – we have been extremely well received. We have got over 2,000 clients now,’ he added.
In 2018 the team plans to invest in Hampden’s digital offering, while keeping personal service at its core.
Hartop said further hires will be likely, but there are no plans to open any new branches. Headcount currently stands around 80 people.
At the end of 2016, the bank, whose chairman is Ray Entwistle reported an operating loss of £6.3 million, down from £8.1 million in 2015. At this time, client lending totalled £48.1 million while deposits stood at £143 million.