Bonham Carter-backed DFM raises £10m


A start-up DFM backed by Jupiter’s Edward Bonham Carter has raised £10m in its latest fundraising round.

Netwealth Investments, which markets itself as an online discretionary wealth manager, launched in May 2016, raising £6.6m pre-launch. The service invites users to invite friends and family to the network, thereby lowering fees across all assets while still keeping portfolios separate.

The second round of capital subscription takes total funds raised to £16.6m.

Jupiter vice chair Bonham Carter says he is optimistic about their potential for continued growth and further success in the years to come. “Netwealth has successfully positioned itself in the discretionary wealth management and advice market.”

Bonham Carter invests in the start up in a personal capacity.

Netwealth chief executive and co-founder Charlotte Ransom says the majority of existing shareholders backed the second round, along with 13 new shareholders.

“Our growth over the past 18 months is a clear signal that cash-rich, time poor professionals are often either under-invested or unhappily invested with traditional providers.

Our core demographic is 40-60 year old professionals who appreciate the benefits of a technology-enhanced service where they still have access to advisers if needed. This explains why the average account size is more than £300,000 with a significant proportion invested in SIPPs and ISAs. Many clients have also included parents and children in their Netwealth Network.”

New investors in include Land Securities chair Alison Carnwath, Cheyne Capital corporate credit co-heads David Peacock and Alan Parker, founder and chairman of Brunswick.