Kingswood has purchased Iboss Group in a recent £16m deal that will bring Kingswood’s AUM to £3bn. The acquired Harrogate-based group encompasses Metnor Holdings, which holds Iboss Asset Management, and Novus Financial Services.
The acquisition is Kingswood’s second of the year, following the purchase of Admiral Wealth Management in the summer.
David Lawrence, UK chief executive at Kingswood, said: “My ambition when taking the reigns of Kingswood’s UK business was, and remains, to create a leading financial advisory and investment management business and this transaction is a big step towards that goal.
“In the Iboss Group, Chris Metcalfe has built a fantastic brand with a superb investment track record. From our first meeting, we knew that blending the Iboss Group with Kingswood would create something special in the sector, harnessing the Iboss Group’s investment record, product range and open market IFA distribution with Kingswood’s existing discretionary investment expertise and rapidly growing financial planning businesses.
“With Kingswood’s resources we aim to accelerate growth and create greater reach into the IFA sector.
“The transaction also allows Kingswood to leverage its successful track record in buying and integrating financial planning businesses by providing the capital to purchase financial planning businesses using Iboss that wish to exit but don’t wish to risk the investment solution provided to their clients.”
The transaction is structured so that shareholders will receive a collective £9.6m in cash payment, along with £6.4m over a two year period, dependent on performance. Iboss will keep its branding, as well as its investment and managing director, Chris Metcalfe.
Mr Metcalfe commented: “We had several potential suitors, but none realised the intrinsic value of how we manage money and the attraction for advisers that comes with our industry-leading service standards and client communications.
“As part of the Kingswood Group, we will offer our new and existing Iboss users an exit strategy that will be one of the most attractive in the industry, something that adviser firms have been asking us to facilitate for some years now.
“We are pleased to be able to deliver precisely what advisers have asked for. For many adviser firms, continuing the investment proposition and not disturbing the client is extremely important.”
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