Aura Venture Fund backs fintech Integrated Portfolio Solutions as it targets SMSF and investors
Integrated Portfolio Solutions, a start-up that has built a platform to help investors keep control of self-managed super and investments, has raised $3 million to fuel ambitious growth plans, which it says will lead to it having $5 billion in funds under administration within the next five years.
Aura Group’s $30 million venture fund led a syndicate of investors in the $3 million raise, which will support IPS’ development of an integrated customer resource management, self-managed superannuation fund reporting and investment platform.
IPS deals directly with all third parties (banks, fund managers and stockbrokers) on a client’s behalf and enables advisers and investors to minimise the cost of portfolio administration, comprehensive reporting and client and practice management.
Led by former Horizon Investment Solutions managing director David Offer, former Vanguard Investments business development manager Edward Caser and former Macquarie Group tax manager Darryl Johnson, the business was founded in 2009 and attracted the attention of independent financial advisers.
Mr Caser told The Australian Financial Review the stockbroking sector was going through major transformation on the back of the global financial crisis when the company launched. He said disruption was heading for wealth management because existing platforms, predominantly operated by the banks, could not handle emerging asset classes.
“There is nobody doing SMSF reporting, CRM and an investment platform [in one]. We’re going to be taking on the likes of Midwinter and IRESS‘ XPLAN when it comes to CRM, but there’s no platform doing all three things,” he said.
“The number of SMSFs is also exploding. There are now 600,000 and the move to real-time reporting next year will cripple a lot of DIY trustees and advice firms, but IPS is already set up for that.”
$2.1 billion in funds
The company now has $2.1 billion in funds under administration, servicing about 30 advice firms. Its average client balance is over $1 million.
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