Wellington-based financial services business Implemented Investment Solutions (IIS) is on the look-out for private capital to fast-track the firm’s next growth phase.
IIS managing director, Anthony Edmonds, confirmed the group was seeking expansion capital following a 12-month period that saw stellar growth in its three existing business lines – fund-hosting, Hunter Investment Management and the InvestNow online platform – and the launch of a new KiwiSaver scheme.
Edmonds said over the last year InvestNow funds under management increased almost 70 per cent to about $760 million while the fund-hosting division had five new clients in line to join the current roster of nine managers.
“We grew well above expectations last year under our own steam but extra capital would simply enable us to grow even faster,” he said.
IIS launched InvestNow early in 2017 after previously establishing a fund-hosting business – that builds the portfolio investment entity (PIE) compliance engine for local and offshore managers – with foundation client Russell Investments.
“Fund-hosting has really taken off recently,” Edmonds said. “We have PIE funds under construction now for five new groups, which reflects the high demand for tax-effective investment products across the NZ investor base.”
The IIS fund-hosting arm now holds almost $5 billion of assets under management with clients including First Sentier (previously First State Investments), Franklin Templeton (ex Legg Mason) and Hunter Investment Management.
IIS has a 50 per cent stake in Hunter, which recently passed $1 billion (up $330 million over 12 months) in assets under management, primarily in its flagship PIMCO-managed global fixed income fund.
Led by Tony Hildyard, Hunter also launched a series of low-cost, tax-efficient diversified funds last year, available via the InvestNow KiwiSaver scheme.
According to Edmonds, Hildyard is focused on branching Hunter out into other asset classes such as global shares
“Tony is doing a great job growing Hunter, with lots of interest currently coming from investment advisers,” he said.
Despite the solid organic growth, Edmonds said an influx of further capital would allow IIS to capture emerging opportunities in all three of its business activities.
“My CFO and strategist Gareth Fleming suggests we should be investing right now to capitalise on all our growth opportunities,” he said.
While IIS has been in preliminary talks with a number of parties, Edmonds said the group was “open-minded” about potential investors.
“Our business it is an interesting mix of fintech, investment management, and funds administration businesses – each which have a different investment profile,” he said.
The business would consider interest from within the industry, private investor groups, venture capital or even individuals, Edmonds said.
“Of course, we’re keen to unlock the growth potential right now but we’re not going to rush anything,” he said.
Fellow Wellington-headquartered investment platform business Sharesies recently completed a third round of capital-raising after also experiencing rapid growth during the previous 12 months.