Nucleus plans to raise over £3m in rights issue

Nucleus is looking to raise more than £3m in a rights issue to help clear some of the company's debt to South African insurer Sanlam.

The wrap provider's chief executive David Ferguson says the company was originally set up with a combination of debt and equity and explains the rights issue is about capital restructuring.

"The company is only three years old, we are very happy with where it is going and are keen to have a cleaner capital structure," he says.

"It's been an on-going conversation for a while now with all the shareholders, including IFAs and shareholders in the business and we are now keen to just get on with it."

Ferguson explains the company is currently in the midst of putting a plan together but was unable to say when the rights issue would be finalised. However, he says the business is performing "extremely well" and is experiencing the best inflows it has ever seen.

"We currently have around £725m assets under management. June saw us take around £50m and last week we did around £15m," he says.

Sanlam is the main institutional investor in Nucleus with a 42.5% shareholding.

It is reported Nucleus borrowed £5m worth of seed capital from the South African bank.

Charlotte.banks@incisivemedia.com