Ratings and data agency Adviser Ratings has launched an equity crowd funding campaign aimed at improving institutional conduct and transparency in the wealth management industry.
According to a statement, Adviser Ratings is seeking to raise capital to fund current and future product initiatives principally comprising its distribution and compliance data services, the Adviser Marketplace and Licensee Ratings.
It noted that Adviser Marketplace is aimed at improving transparency and counterparty risk management, Licensee Ratings addresses consumer interests while the institutional-focused compliance and distribution tools for product manufacturers help reduce system costs for everyone’s benefit.
Adviser Ratings said it’s offering investment in ordinary shares at pre-money valuation of $11 million, with $1 million already raised from current shareholders.
The capital raise also takes advantage of the government’s recently introduced crowd-sourced funding (CSF) regime arranged through Birchal Financial Services.
Adviser Ratings founder and managing director Angus Woods said the opportunity to access the government’s new rules on capital raising allows it to go to a large number of previously excluded investors.
“Before the CSF regulations we were restricted to approach only high-net-worth or institutional investors. Now investors may participate anywhere between $50 and $10,000 in any one company each year,” Mr Woods said.
“More importantly, our rating and review business is driven by our community of consumers and advisers. The crowd funding opportunity allows those that use us and benefit from our products to invest in us, making them a closer part of the family.”
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