What Group Investments launch crowdfund raise through InvestingZone

What Group Investments Ltd, the financial advice and distribution group, is building a new sales force that can advise on and sell life assurance and other health-related policies.

It is the latest company looking to attract finance through the equity-crowdfunding platform InvestingZone.

The York-based financial advisory firm says there is a huge opportunity for growth in the direct sales arena since the collapse of many big insurers and their sales forces over the past 30 years.

“In the mid 1980s there were around 350,000 salespeople working for British financial companies but that has dropped to an alarming low of about 15,000 today” said Neil Harkin of What Group.

““A number of factors including regulation, mis-selling scandals and cost-cutting has meant that many insurers simply do not have the distribution networks that they once had, and this has left a great opportunity for firms such as ours to exploit this gap and provide much needed advice on key areas such as insurance and estate planning.”

“We know this is a great business model because we built a force of 700 advisers in 2006 and sold it to Axa for £101m” said Harkin. “We are essentially looking to do a similar deal again once we have the necessary scale.”

Richard Wills, co-founder, says that, as a result of the collapse in financial sales staff, around 50% of all mortgaged properties – about 6million homes – have inadequate or zero life cover on them – something he describes a “social timebomb”.

What Group is raising £350,000 in exchange for a 14 per cent stake in the business to support it on its next stage of growth, during which it hopes to increase its sales staff to 400-500 people. If its previous experience is any guide this size of business could be worth an estimated £70m within 3-5 years. This year it says it will turn over £3m but that is set to grow exponentially as the company hires more sales staff.

Richard Wills and Neil Harkin, the men behind What Group, have excellent form in this sector. Both helped grow Thinc, a similar sales-force based advisory company, to 700 salesmen before selling to Axa in 2006 for £101m.

The rapidly expanding company, which already employs over 80 staff across the UK, will seek to develop its successful model following the launch of What Partnership in January 2013. This will include expanding its current operations to ensure its clients and advisers are fully supported in the areas of sales administration, training and compliance.

Figures from the Association of British Insurers (ABI) estimate the current UK advice and protection gap at £2.6 trillion and the company firmly believe now is a good time to build on its success.

With £100,000 already pledged, What Group Investments are inviting investors to share in the company’s success.

Commenting on the company’s plans, Neil Harkin, What Group Investments Executive Chairman said, “We have ambitious plans to grow our business from the firm foundations we have already established. Naturally, as our network and direct sales force expands to service the vast personal protection gap in the UK we need to ensure that our clients and advisers are fully supported in all their operations.”

“We are delighted to be working with InvestingZone. Their platform gives an opportunity to speak to experienced investors and allows them to speak us directly about our future growth targets.”

Jean Miller, CEO of InvestingZone said, “We’re pleased to be offering investors the opportunity to back such an exciting project which offers the possibility of solid returns for long-term investors.”

“Investors who want to find out more can get the information they need on our site and can even quiz the directors about their future plans and exit strategies.”

What Group was founded in 2010 and is led by Executive Chairman Neil Harkin and Managing Director, Gregg Taylor.

Investors looking for details should head to https://www.investingzone.com/pitch/292/what-group-investments-ltd