Moneygate secures funding for acquisitions

Moneygate – recently linked to Alpha to Omega (A2O) – has unveiled a three-year expansion plan after securing a capital injection from MGT Capital Investments UK.

Under the deal - the size of which is undisclosed - MGT will provide a "substantial facility" specifically for growth and acquisition projects. The investment will be used to increase Moneygate's IFA network from 75 to 750 advisers over the next four years.

After securing its acquisition war-chest, North-East based Moneygate says it will shortly announce details of the "first phase of its development into one of the leading players in the IFA market".

It adds the capital injection deal, completed in October, makes it "one of the most highly funded IFA businesses in the UK market."

Moneygate's newly appointed chief executive Lee Hartley says: "The MGT deal was planned over a six month period and represents a catalyst that accelerates our expansion across 2010 and through the implementation of RDR.

"We have a clear mandate to grow the business by attracting more top quality advisers into the company. This investment will act as the platform we require to establish ourselves as the number one nationally branded IFA for the mass affluent sector."

The Moneygate Group restructured in 2008, refocusing its activities into the IFA sector whilst closing its mortgage channel. The group now provides financial advice from pensions and investments through to protection and general insurance.

Last week, the national IFA announced it had chosen Ascentric to power its wrap proposition.

The firm was recently linked with Alpha to Omega (A2O) and at one stage was believed to have bought the network, but the deal fell through and the network subsequently wound down.

MGT Capital Investments (UK) Ltd is a subsidiary of Amex-listed MGT Capital Investments Inc, a US technology holding company focusing on investments in the global healthcare and information technology market.