Wealth Manager Tavistock Investments PLC (LON:TAVI) has received a £1mln cash injection from affinity specialist Lighthouse as part of a strategic alliance.
The two companies will develop a range of investment products for Lighthouse’s clients under its Luceo brand.
Tavistock has launched a range of funds under the Acumen brand that comes with capital guarantees and different levels of risk.
Lighthouse will make these capital protected products available to its customer base with the possibility of more of Tavistock’s funds also being included within its model portfolio.
AIM-listed Lighthouse has affinity agreements with 21 organisations with six million members.
The £1mln investment was part of a total fundraising of £1.25mln by Tavistock at 3.28p, a 10% discount to the close last night.
Following that cash injection, Tavistock intends to replace a £2mln debt facility with a new one that will be £100,000 per year cheaper.
Brian Raven, Tavistock's chief executive, said: "The establishment of a strategic relationship between Lighthouse and Tavistock is a significant development for both groups.
“Its selection of Tavistock as its partner to further develop its Luceo range of investment solutions is a strong endorsement of our expertise in this field.”