While best known as one of the leading robo or direct advisers, late last year Nutmeg announced it was piloting a full financial advice service offering tailored recommendations for Ј350 including VAT. The move came two years after the FCA granted the online investment firm permission to carry out regulated advice.
The Goldman Sachs investment has been welcomed by Nutmeg which called it “the largest ever investment into a digital wealth manager in Europe.”
The investment is part of a round of fund raising for the business which aims to expand further, including overseas.
It currently reaches 60,000 investors in the UK with 40% of customers new to investing. It says some 35% are female compared to a market average of 26% and the average age of Nutmeg investors is 40, about 10 years younger than the industry average.
Martin Stead, chief executive officer of Nutmeg and a former EDF Energy senior executive, said: “By the end of 2019 we’re aiming to be a top five wealth manager and then in the top three.
“I’m therefore pleased to announce a fundraise which will inject £45 million into Nutmeg. This will enable us to continue to deliver on our objective to be the most trusted and fastest growing digital wealth manager in the world, by delivering innovative new products and features that expand our offering.
“This funding will also enable us to expand, with an international B2B plug-and-play partnership model which leverages our proprietary technology and our operational expertise.”
One of the other major investors in Nutmeg is Convoy, a Hong Kong-based financial advisory firm which co-led the fund-raising round. Convoy was one of Nutmeg’s earliest investors and will be working with Nutmeg on its launch in Hong Kong later this year.
The new Goldman Sachs investment would value Nutmeg at around £245m, according to Sky News sources.