AIM-listed European Wealth is set for further acquisitions following a £2 million share placement raising.

European Wealth has raised £2 million ($3 million) to fund its acquisition-led growth strategy, which includes the purchase of London-based financial planning firm ISM Solutions.

The UK-listed wealth management group raised £1.9 million net of expenses through a placement of 2,527,095 shares at a price of 80 pence per share, it announced in a statement.

It said the ISM Solutions acquisition, worth £3 million, will be funded by 50 per cent in cash and 50 per cent in shares. 

European Wealth also plans to use the proceeds from the share placement to buy further wealth management businesses, including smaller “bolt-on acquisitions”, while boosting headcount and strengthening its balance sheet.

“The combined fundraising, introducing new and highly supportive institutional investors into our already strong shareholder base, together with our strategic acquisition of ISM Solutions, is evidence of the robust strategy of the European Wealth Group,” said European Wealth's executive chairman, John Morton.

“The developments announced today give us the opportunity to move forward with our growth objectives both through acquisition and organic expansion.”

Earlier this week, the wealth manager reported that while its assets under management grew 59 per cent year-on-year to £1.03 billion over 2014, its profits remained under pressure from last year's “reverse” takeover of European Wealth Management Group.