A DFM aiming to challenge rival firms whose services are reserved “only for the very wealthy” is set to launch a £51.6 million initial public offering.

Tatton Asset Management is planning to offer the IPO on the AIM market in July, it announced this morning.

Tatton’s DFM service is available via platforms and on 10 adviser wrap platforms.

The group was founded in 2007 by chief executive Paul Hogarth. It provides a range of services, encompassing discretionary fund management, regulatory and compliance services and mortgage services.

Mr Hogarth said: “We believe that there is a continuing and vital requirement to offer a value for money, low cost service proposition for the mass affluent market place serviced by the IFA sector.

“As such, the group represents a new model asset manager that is exploiting such opportunities and challenging the existing off-platform, traditional incumbents whose discretionary fund management services have normally been reserved only for the very wealthy.”

Have you read the latest @FPTodayMagazine yet? See what's inside the June edition here:https://t.co/rrDyErGjdR pic.twitter.com/MW90VDjN1Q

— FP Today (@FPTodayNews) June 22, 2017

The company has conditionally raised approximately £10.0 million (before expenses) from an institutional placing of 6,410,256 ordinary shares of £0.20 each and admission is expected to occur on 6 July with a market capitalisation of £87.2 million.

The board said it believes that the move will position the group for “its next stage of development and will provide it with an optimal capital structure for future growth”.

The directors aim to enhance the group's public profile and status with existing and potential clients and assist in incentivising and retaining key management and employees.

The group has three operating subsidiaries. These are:
 Tatton Capital DFM
 Paradigm Partners
 Paradigm Mortgage Service

Mr Hogarth said: "At the centre of our business philosophy has been always to champion the directly authorised IFA sector and provide services that help support them and the needs of their retail clients.

"The IPO of the Tatton Asset Management marks a very important and exciting milestone in the development of the group, allowing us to build our market profile further, reward our staff and other stakeholders, and provide access to the capital markets when needed in the future.”