EDINBURGH investment business Nucleus Financial has raised £32.1 million via a flotation on the Alternative Investment Market.

As part of the listing the firm, which launched 12 years ago, has given up 23 per cent of its equity to institutional shareholders and received a market capitalisation of £139.9m.

The firm’s chief executive David Ferguson called the listing “an important milestone as we continue our work to support and promote the strategic alignment of advisers and their customers”.

“It’s great to see so many institutional investors believing in the growth potential of this objective and we look forward to collaborating with our users to further promote transparency and improve customer outcomes,” he added.

Part of the rationale for the deal was to offer liquidity to existing investors, including around 75 IFA businesses who manage client accounts via Nucleus’s wrap-platform technology and have backed the business from launch.

The business plans to use some of the cash raised to pursue projects that would allow it to accelerate its growth and will also put in place share incentive schemes for management and staff.

Prior to the flotation, management and staff owned a total of 7% of the firm’s equity.