Financial adviser wrap platform set to float on AIM

Financial adviser wrap platform, Nucleus Financial Group, will float on the Alternative Investment Market (AIM) later this month, in a move that could value the company at around £150 million, according to reports.

The Edinburgh based company is responsible for assets under administration of £14.3 billion on behalf of more than 90,000 customers.

The independent wrap platform offers a wide range of services across a variety of tax wrappers and asset classes including cash, OEICs, Unit Trusts, offshore funds, structured products, and listed securities, including ETFs and investment trusts.

Nucleus provides services to more than 2,200 advisers across more than 800 financial adviser firms.

CEO of Nucleus, David Ferguson, said: “We started this business in 2006 to create value through greater strategic alignment of advisers and their clients.”

“Our commitment to this goal drives the development of our award-winning platform and has enabled us to grow from AUA of £100 million in 2007 to more than £14.3 billion today.”

“Nucleus has been an exciting journey so far and we expect this Admission to AIM to mark an important milestone in the business’s maturity and to open up new opportunities for us.”

Trend to continue

The trend for platforms floating may well continue. The Transact platform floated in March and AJ Bell is rumored to be considering a flotation.

NextWealth MD Heather Hopkins believes the increased activity is a sign of a healthy market and the success of Transact’s initial public offering has acted as a catalyst for other platforms.

“Shareholders of other platforms will have seen the price the float has secured, piquing interest in realising a pay-out,” she told Professional Adviser.

She added: “I have long said we will see further consolidation of platforms. Transact’s float set a price for that business, which helps to define a price for other platform businesses too. And the fact investment banks have been crawling all over platforms should naturally lead to more M&A activity.”

Sources:
https://dailybusinessgroup.co.uk/2018/07/scottish-wrap-platform-nucleus-confirms-flotation-on-aim/
https://www.investmentweek.co.uk/investment-week/news/3035102/nucleus-set-to-float-on-aim-reports

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All figures correct as at 19.11.2018.