Kingswood Holdings has secured £80m to fund its pipeline of acquisitions as the wealth management group looks to South-East Asia for its next deal.
The investment will see Pollen Street become a shareholder in the business and the investor has the right to appoint up to two directors to the Kingswood board.
The funds will be used to back Kingswood’s acquisition pipeline, which earlier in the year it confirmed was in excess of £100m.
Gary Wilder, group chief executive at Kingswood, said: “We’re delighted to confirm the fundraising with Pollen Street. We believe they will be an excellent partner as we execute on our shared global vision for the group.
“We have been extremely impressed by the depth of their industry knowledge, the thoroughness of their due diligence, and our shared belief in building a best in class global wealth management platform that delivers quality products to clients and outstanding shareholder value.”
Earlier this month the AIM-listed firm announced it had bought Sheffield-based WFI Financial in a deal worth up to £14m which will see its assets under management grow to £2.5bn with a client base of 5,500.
Mr Wilder added: “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.”
Howard Garland, partner at Pollen Street Capital, said the firm believes the wider wealth management sector offers “compelling opportunities for growth”.
Mr Garland said: “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.”
In the first quarter of this year Kingswood completed its purchase of Oxford-based Thomas & Co and acquired Marchant McKechnie in East Yorkshire last year.
In May the wealth manager marked its entrance into the US market when it took an initial stake in Manhattan Harbor Capital.
In today’s statement Kingswood said it had also entered exclusive discussions to acquire a regulated business in Singapore to focus on growth opportunities across Asia.
Buzz West, chairman at Kingswood, said: “We’ve established an experienced team, an expanding product line and an international footprint which solidifies our growth plan.
“Our core proposition centres on primary offerings in wealth planning and investment management to deliver trusted financial solutions for clients.
“As we continue into the second half of the year, we look forward to further exciting announcements in terms of both domestic and international expansion and new investment products.”
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