ClearView is to raise $50 million through a rights issue to repay a Commonwealth Bank debt facility and strengthen its balance sheet.

The one for 10.2 share rights issue has been priced at 85 cents and $45.5 million will be used to pay the bank debt with the remainder used as capital for growth.

“What we are announcing reflects strong performance across our business and what we regard as a transition of ClearView’s underlying business from a build phase to a growth phase,” MD Simon Swanson said.

“Notwithstanding that there has been some volatility in investment markets, ClearView is in a strong position with profit growth now emerging.”

The financial services company has also confirmed its major shareholder, Crescent Capital, is looking at selling its 53% stake.

“The board intends to solicit and evaluate proposals in the best interests of all shareholders,” Mr Swanson said. “Morgan Stanley has been appointed for this process.”

Crescent is taking up its full entitlement under the rights issue, as are the four ClearView board members.

As part of the capital raising, the company has updated its financial position since the half-year results were released in February.

It reported inforce life premiums up 30% to $142.3 million for the 10 months ending April 30. New business in that period was up 8% to $30.1 million.

The key growth new business driver was the life advice LifeSolutions portfolio, up 20% to $26.4 million for the 10 months.

Mr Swanson says ClearView is currently concentrating on upgrading its adviser portal, particularly the online quote system and application process.

He says this will help the company expand its penetration into the independent financial adviser market.

ClearView now has 230 advisers operating under its dealer groups – up from 221 at December 31.