In a statement today (18 March), Pollen Street Capital subsidiary HSQ put an unconditional cash offer to buy the remaining shares in Kingswood in a deal worth an estimated £43m.

HSQ currently owns 89.39% of Kingswood’s issued share capital, and has now put in an unconditional offer to purchase the remaining 10.61% at 7p per share.

Following the offer’s completion, the firm will ‘consider a merger of the company’s UK and Ireland business with another wealth management company that is an existing portfolio company of funds managed and advised by Pollen Street’.

Pollen Street Capital also backs UK wealth firm Mattioli Woods, which it bought for £432m last August.

Alongside Mattioli Woods, Pollen Street also owns Shawbrook Bank and mortgage broking consolidator Pivotal Growth.

Last week, Kingswood revealed it was in advanced discussions with HSQ about taking over the company and delisting it to rescue it from mounting debts.

HSQ initially invested in Kingswood in September 2019, providing up to £80m of growth equity capital to the business to pursue Kingswood’s strategy of creating the leading UK advice-led wealth management consolidator.

While Kingswood has seen growth in revenues and assets since HSQ invested, it has admitted that its debts have increased “significantly” in the past two years due to its acquisition strategy. As of 31 December 2024, Kingswood’s gross debt amounted to £90.7m. The year prior, HSQ had propped up the business with loans totalling £21m.

While Kingswood has seen growth in revenues and assets since HSQ invested, it has admitted that its debts have increased “significantly” in the past two years due to its acquisition strategy.