Kingswood Holdings Limited, the integrated wealth management group, has announced it has raised £80M of funding for acquisitions from Private Equity House Pollen Street Capital.
As an AIM listed business, it has committed to raise up to £80 million by way of a subscription of irredeemable Convertible Preference Shares, to be issued in instalments and convertible into Ordinary Shares at 16.5p per share, to fund approved acquisitions in the UK, US and Asia.
It is proposed that an initial commitment of up to £40 million of Convertible Preference Shares will be subscribed for by Pollen Street Capital Limited. It is further planned that an additional amount of up to £40 million of Convertible Preference Shares will potentially be subscribed by the Subscriber, to invest funds from investors with co-investment rights in funds managed and/or advised by the Pollen Street Capital Group.
It is intended that the fundraising will initially be used to fund the acquisition of WFI Financial, which was announced on 4 September 2019 and is due to complete next week.
Gary Wilder, Group CEO 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. We thank them for their efforts in getting to this significant milestone in Kingswood’s further development and the trust they have placed in the Board and its staff.”
Howard Garland, Partner at Pollen Street, commented: “We believe the wider wealth management sector offers compelling opportunities for growth. The business has a clear strategy for the future and we are excited to have the chance to partner with the Group. 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.”
Gunner & Co. work alongside Kingswood to identify growing businesses they can invest in. To know more contact Louise.Jeffreys@gunnerandco.com