U.K. Digital Wealth Manager Nutmeg Raises 30 Million Pounds

  • Hong Kong financial adviser Convoy leads round with 24 million
  • Funding marks biggest investment in fintech since Brexit

British digital wealth management startup Nutmeg has raised 30 million pounds ($37 million) to fund growth in the U.K. and a possible expansion in Asia.

The funding round is the largest in the U.K. financial technology sector since the country voted to leave the European Union in June, and brings Nutmeg’s investment to 59.4 million pounds over the last five years, the company said in a statement Monday.

Nutmeg, launched in 2012, was one of the first "robo advisers" in the U.K. It currently has more than 500 million pounds in assets from more than 20,000 customers, the company said.

Hong Kong financial advisory firm Convoy Global Holdings Ltd. lead the investment, putting 24 million pounds into the London-based startup. Existing Nutmeg investors Schroders, Balderton Capital, Pentech, Armada Investment Group and Nigel Wray also participated in the round.

"What we’re most excited about is Nutmeg’s mission to democratize wealth management while delivering sustained investment performance and seamless customer experience," Ng Wing Fai, group president of Convoy, said in the statement.

The funding round comes just as a new wave of automated asset management firms are hitting the U.K. market. Wealthify Ltd., a platform based in Cardiff, Wales, is aimed at the same young demographic group as Nutmeg. Netwealth Ltd., of Reading, England, opened earlier this year with an eye toward attracting affluent investors chafing at the high costs of private banking. Charlotte Ransom, Netwealth’s founder and chief executive officer, is a former partner at Goldman Sachs Group Inc. who headed its institutional wealth management operations in Europe, the Middle East and Asia.

The incumbents aren’t standing still. UBS AG, the Zurich-based banking giant, is incorporating automated portfolio management tools into its private banking offerings.

Philip Hammond, U.K. Chancellor of the Exchequer, said the investment “confirms the U.K.’s position as the global FinTech capital. This is another international investment into a home-grown U.K. company, demonstrating the U.K. is open for business‎.”

Nutmeg said it planned to offer enhancements to its existing stock and bond portfolio offerings, including new investing options, new tax wrappers and more tailored financial advice.

The startup has received two previous funding rounds, the last for $32 million in June 2014. It didn’t disclose its valuation after the latest funding.

Johnny Chen, a senior adviser to Convoy and the former greater China chief executive officer for Zurich Insurance Group, will take a seat on Nutmeg’s board.

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