Generation Development Group has launched a $35m equity raising through Morgans and Moelis to buy a stake in Lonsec for $20.1m.
The shares are being sold at 70c each, a 16.7 per cent discount to the last closing price of 84c on Wednesday.
The raise is by way of a fully underwritten placement to secure $21.9m and a 1 for 6.7 non-renounceable entitlement offer to secure $13.1m, representing 14.9 per cent of current issued capital.
The proceeds are being used to buy a 37 per cent stake in financial research business Lonsec, fund the development of a new annuity product, provide general corporate working capital and pay transaction costs.
Formerly known as Austock Group, Generation Development Group is an ASX listed company that operates as a registered Pooled Development Fund (PDF) specialising in providing development capital to financial sector businesses.
The business is chaired by former Westpac executive Rob Coombe and run by former Olympic gold medallist swimmer Grant Hackett.
Lonsec is a qualitative research firm that provides ratings to fund managers, superannuation funds, advisory groups and platforms.
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