TIDMKWG
RNS Number : 3648Z
Kingswood Holdings Limited
18 September 2020
The information communicated in this announcement contains
inside information for the purposes of Article 7 of the Market
Abuse Regulation (EU) No. 596/2014.
Acquisition of Regency Investment Services
Kingswood Holdings Limited ("Kingswood") announces their
agreement to acquire Regency Investment Services, a Surrey-based
regional IFA platform in Surrey, adding further breadth and scale
to distribution network which now includes 15 locations across the
UK
The transaction boosts Kingswood's client facing advisory team
to 67 people and increasing funds under advice/management to GBP5.0
billion from over 16,000 active clients
Kingswood Holdings Limited (AIM: KWG), the international, fully
integrated wealth and investment management group, is pleased to
announce it has agreed to acquire, subject to regulatory approval,
Regency Investment Services Limited (Regency), a high-quality IFA
business which operates from Egham, Surrey.
Gary Wilder, Group CEO at Kingswood , commented: "We look
forward to welcoming Dominique Vinecombe and the Regency team to
Kingswood. Dominique's grandfather founded the business 55 years
ago, and we are honoured she has entrusted us to carry on the
legacy of outstanding customer service for which the business is
renowned. Dominique will continue with the business and we look
forward to working with her to grow and expand the services offered
to clients. There is a major opportunity over time to migrate
existing and new clients to Kingwood's extensive and growing range
of managed investment solutions on our DFM platform, underpinning
the value of a fully integrated wealth and investment management
business. We have a robust pipeline of further acquisition
opportunities in the UK and US that we are reviewing; and
negotiating exclusively with three transactions in the UK."
Regency Acquisition
Regency provides independent financial advice to individuals and
corporates primarily in the Greater London area and currently
employs 12 people including 6 IFAs advising/managing GBP 320
million AUA/AUM on behalf of circa 1,000 clients.
On receipt of regulatory approval, the business will be acquired
for cash consideration of GBP3.45 million, payable over a 3-year
period. GBP1.38m will be paid at closing and the balance paid on a
deferred basis subject to Regency meeting pre-agreed recurring
revenue and EBITDA hurdles over the 3-year year period. An
additional deferred payment of maximum GBP1.2 million is
potentially payable at the end of the 3-year period subject to
achievement of an excess EBITDA target over the deferred
period.
Regency is an established company founded by the current
principal's grandfather in 1965. Dominique Vinecombe has continued
her grandfather's legacy and supported by Alan Lander has grown the
business across the Greater London area primarily through organic
growth. In the twelve months to 31 January 2020 it delivered EBITDA
of GBP0.55 million through strong and consistent revenue delivery
and a keen focus on driving high levels of recurring revenue. As of
31 January 2020 it had total assets of GBP2.6m and net assets of
GBP2.1m.
The company has a highly qualified and experienced team of
financial advisers supported by a dedicated operational team.
Regency's continued success is built around developing and
maintaining long-term client relationships, making the team a
perfect fit for Kingswood.
At completion, the acquisition will be funded by Kingswood's
issue of new convertible preference shares, under the terms of its
Convertible Preference Share subscription agreement with HSQ
INVESTMENT LIMITED, a wholly owned indirect subsidiary of funds
managed and/or advised by Pollen Street Capital Limited.
Patrick Goulding, Group CFO and Platform CEO , said: "We are
delighted Dominique will remain with Kingswood and continue to
focus on delivering exceptional quality service to Regency's client
base. The Kingswood model is designed to free Dominique and other
advisers to focus on their clients, and provide a centralised,
efficient support infrastructure to manage the routine but time
consuming tasks required across compliance, finance, human
resources, risk and technology."
For further details, please contact:
Kingswood Holdings Limited +44 (0)20 7293 0730
Gary Wilder / Patrick Goulding www.kingswood-group.com
Peel Hunt LLP (Nomad and Broker) +44 (0)20 7418 8900
James Britton / Rishi Shah
Greentarget (for Kingswood media) +44 (0) 783 457 1183
Jamie Brownlee / Alice Gasson / Ellie eleonore.basle@greentarget.co.uk
Basle
Stand Agency (for Pollen Street media)
Cait Dacey
+44 (0) 7973 596 503
pollenstreet@standagency.com
About Kingswood
Kingswood Holdings Limited (trading as Kingswood) is an
AIM-listed (AIM: KWG) international fully integrated wealth
management group, with around 16,000 active clients and circa
GBP4.8 billion of Assets under Advice and Management. It has a
growing network of offices in the UK including Abingdon, Beverley,
Darlington, Derby, Grimsby, Hull, Lincoln, London, Maidstone,
Newcastle, Sheffield (2), Worcester and York with offices in
Johannesburg, South Africa and Atlanta, New York and San Diego in
US.
Kingswood offers a range of trusted investment solutions to its
clients, which range from private individuals to some of the UK's
largest universities and institutions, including investment advice
and management, personal and company pensions and wealth planning.
Kingswood is focused on becoming a leading player in the wealth and
investment management market through targeted acquisitions in the
UK and US, creating a global business through strategic
partnerships.
About Pollen Street Capital
Pollen Street Capital is an independent alternative asset
investment management company focused on the financial and business
services sectors across both private equity and credit strategies.
The private equity strategy is focused on investing in lower middle
market firms which have the capacity to become leaders in their
field across Europe. Pollen Street have deployed over GBP1.2bn
capital into this strategy over the last 14 years delivering strong
returns throughout. It was established in 2013 and manages GBP2.8bn
gross AUM on behalf of investors including leading pension funds,
asset managers, banks and family offices from around the world.
Pollen Street Capital has a team of 70+ professionals with offices
in London and New York.
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END
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