£39.4m capital raising enhances Embark Group's disruptive positioning

By Abbie Knight

News

Jul 04, 2019

We are pleased to announce the Embark Group (‘Embark’) has completed a £39.4 million capital raising, providing growth capital to be deployed organically and via acquisition. The Group is experiencing unprecedented demand for its digital retirement and platform services, and the capital raising will enable it to take full advantage of its disruptive position in the UK investment savings sector.

The core capital of the £39.4m raise is funded by new institutional investors BlackRock, Inc. and Legg Mason, Inc. and material investment by Merian Chrysalis Investment Company Limited. Existing shareholders will also support the capital raising. In addition to early stage investor New Star Investment Trust plc, the Group now has a portfolio of high quality ‘cornerstone’ long-term investors. Each investor holds a material minority position, and accordingly will not hold seats on its independent Board of Directors.

Phil Smith, Embark Group Chief Executive, says:

“The capital raising represents a significant step in our ambition, capacity and capability to be a major force in digitally led retirement and savings sector. Capital is central for continued steady growth but partnering with major global players who have a fully aligned vision of the future requirements across the financial advisory, direct and workplace channels, is of huge benefit."

Sarah Melvin, BlackRock Head of UK, says:

“The UK retail distribution landscape is evolving rapidly, with more individuals taking greater responsibility for their financial future and retirement needs. This trend requires our clients to have access to high quality, technology-enabled investment solutions. Our partnership with Embark Group allows us to meet these evolving needs of our clients and their customers in this critically important UK market.”

Terence A. Johnson, Legg Mason Head of Global Distribution, says:

“With demand for digital access and interactive tools growing, Legg Mason is investing in financial technologies and platforms that meet the evolving expectations of advisors and their clients in markets around the world. This strategic investment in Embark is an opportunity to better serve the UK advisor base and to pursue new channels for growth in this important market. We believe that our affiliate asset managers provide a diverse range of investment options to meet retirement, income and other important investment needs of UK investors.”