Kingswood acquires Regency Investment Services

RNS Number : 6366F

Kingswood Holdings Limited

17 November 2020

 

Kingswood completes the acquisition of Regency Investment Services

Settlement of second and final deferred consideration payment regarding Marchant McKechnie business acquired in October 2018

Kingswood Holdings Limited (AIM: KWG), the international fully integrated wealth and investment management group, is pleased to announce that it has completed the acquisition of Regency Investment Services Limited (Regency), a high-quality IFA business which operates from Egham, Surrey. The transaction boosts Kingswood's client facing advisory team to 67 people and increases assets under advice/management to circa £5.0 billion from over 16,000 active clients.

Regency provides independent financial advice to individuals and corporates primarily in the Greater London area and currently employs 12 people including six IFAs advising on and managing £320 million AUA/AUM on behalf of circa 1,000 clients.

The business has been acquired for cash consideration of £3.45 million, payable over a 3-year period. 1.38m was paid at closing and the balance will be paid on a deferred basis subject to Regency meeting pre-agreed recurring revenue and EBITDA hurdles over a 3-year year period. An additional deferred payment of maximum £1.2 million is potentially payable at the end of the 3-year period subject to achievement of an excess EBITDA target over that period.

The company has a highly qualified and experienced team of financial advisers supported by a dedicated support team. Regency's continued success is built around developing and maintaining long-term client relationships, making the Regency team a perfect fit for Kingswood.

In addition to this acquisition, the second and final deferred consideration payment regarding Marchant McKechnie, a business acquired in October 2018, has been made. The business continues to perform well and in the first two years of ownership has exceeded the performance targets required in order for deferred consideration to be paid. 

The Regency acquisition, the Marchant McKechnie deferred consideration payment, plus some additional transaction related costs have been funded by Kingswood's  issue of 2,900,000 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 ("Pollen Street"). The Company now has a total of 23,900,043 convertible preference shares in issue.

Gary Wilder, Group CEO at Kingswood,  commented: "We are delighted to welcome Dominique Vinecombe and the Regency team to Kingswood. Dominique will continue to focus on delivering exceptional quality service to Regency's client base. We recognise over time the major opportunity 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."

For further details, please contact:

Kingswood Holdings Limited	[phone]
Gary Wilder / Patrick Goulding	www.kingswood-group.com
Peel Hunt LLP (Nomad and Broker)	[phone]
James Britton / Rishi Shah
Greentarget (for Kingswood media) Jamie Brownlee / Alice Gasson / Ellie Basle	[phone] [e-mail]

Stand Agency (for Pollen Street media)

Cait Dacey

[phone]

[e-mail]

 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 5.0 billion of Assets under Advice and Management. It has a growing network of offices in the UK including Abingdon, Beverley, Darlington, Derby, Egham, 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 £1.2bn capital into this strategy over the last 14 years delivering strong returns for its investors that include 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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