Melbourne-based investment company IPO Wealth has announced the achievement of a capital raising of over $100 million as investors seek alternatives to low rate term-deposits offered by the big banks.
The announcement comes just one week after the company celebrated its second anniversary, illustrating the strong market demand by investors for portfolio diversification.
In celebrating the significant milestone, James Mawhinney, Managing Director of IPO Wealth’s parent company Mayfair 101, said that the result is a testament to the group’s high-quality customer service and an asset base that provides the ability to pay more attractive rates of return.
“Receiving $100 million of new investment in two short years shows that investors are increasingly seeking income-producing cash alternatives in the face of low interest rates and Australian stock and property market volatility,” Mr Mawhinney said.
“IPO Wealth is particularly attractive to those seeking higher rates of return and the ability to earn monthly cash payments. Our audience is wholesale and sophisticated investors looking for non-bank investments ranging from 3 months to 5 years.
“Combine these factors with IPO Wealth’s commitment to outstanding customer service and it becomes apparent why an increasing number of investors are making the switch.”
The success of the IPO Wealth model lies in the strength of parent company Mayfair 101’s international investment strategy.
“Mayfair 101 has diversified assets in eleven countries, ten sectors and five currencies. Its strategic approach emphasises late stage investments in companies with over five years of successful operations, as well as others heading towards trade sales or IPO’s,” Mr Mawhinney said.
“These assets enable IPO Wealth to offer rates of return that have consistently outperformed term deposits since inception and provide investors an asset class that keeps up with changing times and is well clear of the turmoil being experienced by the Australian economy.”
Following the success of the IPO Wealth model, Mayfair 101 has plans to list its UK subsidiary M12 Global on the AIM market of the London Stock Exchange to provide investors in the UK with a similar alternative to bank deposits. This will enable Mayfair 101 to access the lucrative UK market to fill over $3 billion worth of demand for credit within its portfolio over the next five years through the issuing retail bonds, which is a considerably under-serviced market in the UK.
IPO Wealth offers a target returns ranging from 3.25-6.45% per annum, across six term-based investment options ranging from three months to five years.
Distributions are reinvested or paid monthly and the fund is open to individuals, self-managed super funds, trusts and companies with a minimum investment of $100,000.