UK-based wealth management firm Kingswood has raised an investment of up to £80m ($98.7m, €89.3m).
It has done so by issuing irredeemable convertible preference shares to some investors and funds of investment manager Pollen Street Capital.
The share is then converted into Kingswood ordinary shares, on or before 31 December 2023, valued at 16.5p each.
The wealth manager said it is going to use the money to fund its acquisition pipeline, following the latest buy-out of IFA firm WFI Financial in early September 2019 for £14m.
One of these could be in Singapore, where Kingswood entered into “exclusive discussions” to buy a business serving the south-east Asia market.
Expansions west to east
“We’re delighted to confirm the fundraising with Pollen Street,” said Gary Wilder, chief executive at Kingswood.
“This major investment by a global investor such as Pollen Street is a strong affirmation of the vision and growth strategy set by the board at the beginning of the year.
“The level of commitment highlights the growth potential both Kingswood and Pollen Street see in our stock and the potential to add significant value for shareholders.”
Pollen Street will be able to appoint two directors to the Kingswood board.
Howard Garland, partner at Pollen Street Capital, said: “We believe the wider wealth management sector offers compelling opportunities for growth. The business has a clear strategy for the future, and we are excited to have the chance to partner with Kingswood.
“Pollen Street has extensive expertise in building market leading companies both via acquisitions and through organic growth using technological innovation and we are convinced these skillsets and our capital commitment will enable the group to accelerate the implementation of their strategy.”
Including WFI, the UK wealth manager has already made three acquisitions in 2019, one of which was a 7% stake in US-based investment adviser consolidator Manhattan Harbor Capital.
