Alpha Financial Markets, which provides consultancy services to the wealth management industry, has started trading on the AIM market of the London Stock Exchange.
The company, which was backed by private equity firm Dunedin, has raised £125.4 million at a placing price of 160p per share, resulting in a capitalisation of £163 million on admission to the market.
The IPO has enabled Dunedin to fully exit the business, generating a strong return for its investors after just nineteen months and an IRR of 55%.
Dunedin acquired Alpha in February 2016 and the company has seen strong growth in revenues over the 18 months which has enabled an exit via IPO. During Dunedin’s ownership period, Alpha has grown both organically and through acquisition, and has increased its international footprint.
Alpha is headquartered in London and employs over 250 consultants and contractors in nine major cities.
Mark Ligertwood, partner of Dunedin, said: “Alpha’s successful IPO and the positive response that it has received from investors is testament to the strength and quality of the business and its management team. We had a clear and ambitious growth plan for the Company at the time we invested and have worked in partnership with Euan and the rest of the team over the last nineteen months to deliver on this. We are really pleased to have been part of the Alpha story.”
Euan Fraser, CEO of Alpha, added: “We are delighted to be beginning our new life as a public company on AIM. We believe that being a public company will best suit our ongoing commercial objectives, as we look to capitalise on the many high-growth opportunities that exist across geographies and markets in the rapidly evolving asset and wealth management industry.”
The flotation of Alpha marks another strong return for Dunedin Buyout Fund III, which has completed seven investments, three exits and fifteen portfolio acquisitions since 2013.