Consolidator AFH aims to raise £17.5m from its latest share issue to fund continued acquisitions in the advice market.
AFH said it had increased the size of its second share issue of 2017 to meet investor demand. It originally wanted to raise £15m but has increased the total to £17.5m
AFH chief executive Alan Hudson explained all its current institutional investors had increased their stakes in the group.
"Following on the success of our last issue, we see this as demonstrating continuing confidence in the company and an endorsement of its strategy," he said.
The money raised will give AFH a £20m-plus war chest to continue its twin-track expansion strategy of merging with other companies and continuing to grow its client base through its team of 165 financial advisers, who cover the whole of the UK.
"Our core business is growing strongly, organically," Hudson added. In the last financial year AFH reported 20% organic growth and now serves around 10,000 clients, with £2.7bn under management.
"That growth, allied to our policy of selective acquisitions of businesses that share our client-first vision, gives us better purchasing power and allows us to attract top talent to our adviser team, as well as expanding our in-house expertise and support for advisers and clients.
"Our strategy is all about giving benefit to clients rather than just consolidation for financial engineering."
On Monday, AFH announced the purchase of Colchester-based Britton Financial, which had 500 clients and £57m under managemen.
Hudson said the group was looking to acquire businesses of all sizes, including small retiring IFAs.
Closing in 2020
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