Committed Capital acquires 49% stake in Moneygate

National IFA Moneygate says it will push ahead with its expansion and acquisition plans following Committed Capital’s purchase of an equity stake in the group.

Today, the north-east based IFA consolidator confirmed private equity business and Succession Advisory Services backer Committed Capital has acquired MGT Capital's 49% stake in the group.

"Committed Capital brings to the table a wealth of experience in the market and a very considerable fund base," says Moneygate chief executive Lee Hartley. "We welcomed Committed onto our board this week and it is clear that they are perfect partners for us."

An SEC filling on January 31 reveals MGT sold its stake to Committed Capital for £96 with the deal now being subject to FSA approval.

Moneygate says the purchase of MGT's equity position for a "nominal fee" was in return for releasing the US-based technology firm from all future financial obligations. 

A Moneygate spokesperson says Committed Capital will provide funding for future acquisitions. The private equity business, which owns a stake in Simon Chamberlain's Succession, has two proprietary funds - an enterprise capital fund and a venture capital trust - each with over £25m investible on an annual basis.

"Our stake in Moneygate represents a partnership that is an exceptional strategic fit within our portfolio of investments," says Committed Capital CEO Steve Harris.

Committed Capital's advisory board includes former Cazenove vice-chairman Tim Steel and current head of J O Hambro, Rupert Hambro.

Moneygate says it is now on course to add more than 120 advisers to its books over the next 12 months through new hires and acquisitions, which will take to 185 the number of its advisers.

Last year, the national IFA set out plans to increase its IFA network to 750 advisers over the next four years.

In June, it acquired Buckinghamshire-based Beacon Asset Management in a deal it said signalled a shift in acquisition strategy to larger, established firms.

Moneygate was linked with network Alpha 2 Omega last year but the deal subsequently fell through.

In December, it revealed it spent £100k on due diligence into a failed bid for Clarkson Hill.