Wealth management group Ashcourt Rowan is to receive an £8.5m cash injection by offering shares in the company.

New and existing shareholders will acquire shares in a bid to position the business as a leading player in the wealth management market.

The decision follows the appointment of Jonathan Polin as group chief executive of the firm in September.

Ashcourt Rowan, an IFP sponsor, hopes the injection will enable the firm to strengthen its balance sheet, establish a common operating platform, complete a planned programme of cost reductions and improve the regulatory capital position.

The significant cost reductions will allow the firm to make annual savings of £5.2m when fully implemented.

The firm currently has 18 offices and assets under management of £4bn.

Mr Polin said: “While there is still a great deal of hard work ahead, the capital raising we have announced today will provide the best platform from which to build on our progress to date, adding significant strength to the balance sheet and allowing for considerable investment in our people, processes and proposition.

“Ashcourt Rowan is extremely well-positioned to take advantage of the opportunities in the wealth management sector and I am committed to ensuring the business reaches its full potential.”

The offering is subject to agreement of the Board at a general meeting on 2 December.