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Towry secures £70m package to fund wealth buy spree
by Dylan Lobo on May 06, 2014 at 10:18
Towry's creditors have granted it a new £70 million financing agreement.
This new package, arranged by GE Capital, HSBC and RBS, reduces Towry’s cost of capital as well as securing additional funding for its expansion plans.
The facility has already supported the acquisition of Baker Tilly's private client business on 29 April.
'This agreement brings us excellent new lending relationships and additional finance, which further strengthens Towry’s strategy of acquiring wealth management firms that we see as a strong fit with the existing business,' Towry chief executive Rob Devey (pictured) said in a statement.
'Since the start of 2013, Towry has acquired six companies, and we continue to have secure financial backing to complete future deals.'
The deal comes a few weeks after Towry's former chief executive Andrew Fisher stood down after eight years at the helm.,
The news coincided with full-year numbers from Towry in which it reported a 14.4% rise in assets to £5.6 billion, while operating profit was flat at £11.8 million. Over the 12 months Towry completed five acquisitions, including Bluefin Personal Consulting.
The accounts for Towry Holdings also revealed the company paid £2 million in exceptional regulatory costs, which included a review of its processes.
In a statement it said: ‘Exceptional regulatory costs in 2013 and 2012 relate to responding to the FCA on various regulatory matters. Following these discussions, Towry has undertaken various actions to address the issues raised, including reviewing our processes and ensuring that we have historically done the right thing for our clients.’
The company also indicated further related costs would continue to be incurred but that it could not determine the amounts and therefore had not set aside any provision for future costs.
A Towry spokesman said: 'With regards to regulatory costs, like many firms in our industry, we have reviewed our processes and ensured that we have historically done the right thing for our clients and where necessary, taken action.
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