Future Super parades $225m valuation as E&P stitches up Series C
ESG-flavoured superannuation and investments start-up Future Super has tapped E&P Corporate Advisory to drum up fresh capital, telling investors it can more than double its assets to $25 billion in the next three years.
Future Super founder Simon Sheikh.
Dubbed a Series C round, Future Super is asking investors for $10 million at $225 million fully diluted pre-money valuation. The raise is structured as preference shares.
A term sheet seen by Street Talk said Future Super would use the proceeds primarily for acquisitions. However, the company has since parked its immediate M&A ambitions, sources said.
E&P is understood to have found enough demand for the raising, and is expected to settle the raising in August. An Australian Securities and Investments Commission fine on greenwashing in Future Super’s advertisements doesn’t seem to have scared off investors.
Future Super has about 280,000 clients across three primary business units, superannuation, investments and insurance. The superannuation arm has three constituents across its original product Future Super ($1.5 billion in assets) and two acquisitions – corporate superannuation fund Smart Monday ($5.3 billion) and Verve Super ($300 million).
Together, the three units were forecast to pull in $60.1 million revenue for the 2023 financial year off their $10.3 billion in assets. That would mean $3 million EBITDA, according to the flyer.
Future Super’s ambitious growth plans, as laid out in the teaser, said revenue would grow to $103.5 million in the 2027 financial year. At that time, it would be managing $24.1 billion and doing $24.5 million on the earnings line.
E&P’s fund-raising pitch said Future Super was positioned to benefit from Australians’ demand for ethical
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