Harwood Wealth, founded in 2001 under the name Compass Wealth Management, will launch an initial public offering and placing to apply for the admission of its ordinary shares to trading on AIM.

The business, set up by Neil Dunkley and Mark Howard, made the announcement this morning. Harwood Wealth is the parent company.

N+1 Singer, which is acting as sole broker and nominated adviser, has raised £13.5 million (subject to admission and before expenses) in an over-subscribed fundraise, of which £10 million was raised as new equity for the company. The net proceeds will be used principally to provide funds for further acquisitions together with modest associated infrastructure costs.

The group has more than 80 FCA-regulated financial advisers and seven investment professionals, and Assets Under Influence in excess of £1.25 billion.

Compass has grown primarily through acquisition and has completed over 40 business and share purchases.

The group recently acquired Meon Valley Financial Planning Limited on 1 February and, conditional on admission, Wellian Investment Solutions.

The group focuses on the provision of investment advice, management and administration to its clients through a vertically-integrated model.

It looks at advice to individuals with £200,000 to £500,000 of liquid financial assets or net assets, excluding main residence.

The directors believe that further legislative changes, including the proposed extension of pension freedoms to people with annuities will create a secondary market and present additional opportunities for advice.

Neil Dunkley, joint chief executive, said: “Over the past 25 years a number of key events and developments in legislation, corporate strategy and the financial services industry have increased the complexity of personal wealth management and we anticipate that this trend will continue.

“Further legislative changes, including the proposed extension of pension freedoms to people with annuities which we anticipate will create a secondary market, present a clear need for advice.”

Alan Durrant, joint chief executive, said: “Following the Retail Distribution Review the industry is undergoing significant structural change. Many financial advisory firms have strong client books but unworkable, fragmented models, rising regulatory costs and a need to outsource certain functions or to be acquired. All these factors create a significant opportunity for Harwood Wealth’s acquisitive growth strategy and the vertically integrated model.”