Kingswood H. Regulatory News (KWG)

17th November 2021

KINGSWOOD HOLDINGS LIMITED

Acquisition of Smythe and Walter Limited

Kingswood Holdings Limited ("Kingswood") announces an agreement to acquire the business assets of Smythe and Walter ("Smythe and Walter"), a financial planning business based in Faversham, Kent.

The transaction boosts Kingswood's UK client facing advisory team to 71 people and increases UK funds under advice/management to £4.7 billion from circa 9,300 active clients. 

Kingswood Group AuA now totals over £6.4 billion from global retail and institutional clients.

Kingswood Holdings Limited (AIM: KWG), the international, fully integrated wealth and investment management group, is pleased to announce that it has agreed to acquire, subject to completion, the business assets of Smythe and Walter Limited, an independent financial planning business servicing clients across Kent.

David Lawrence, UK CEO at Kingswood, commented:

"Smythe and Walter are a growing firm and this acquisition enhances our existing footprint in the South East. I am delighted to welcome Lee Smythe and his team to Kingswood. This is our third acquisition of 2021 and we continue to have a strong pipeline of high-quality UK opportunities under negotiation, five of which are in the exclusive due diligence stage.

Lee Smythe leads a team of three who look after approximately 100 client households with around £40 million assets under management advising on all aspects of personal financial planning. For the year ended 31 March 2021 Smythe and Walter reported revenues of £293k, profit before tax of £100k and had net assets at that date of £9.7k."

Lee Smythe, CEO of Smythe and Walter, commented:

''With an ever increasing regulatory burden, joining Kingswood enables us to gain access to the resources and support, which we need to both provide a wider range of services to our current clients and to grow our future business in a cost effective manner. In addition to this, given the events of the last 18 months or so, becoming part of a larger firm ensures a greater sense of security for both staff and clients alike.

With the additional support functions in place, I am looking forward to being able to spend more time on the most important and enjoyable part of our business, looking after our clients.''

Consideration

Following completion, £420K will be paid immediately and up to £420k will be payable on a deferred basis over the following two years, subject to the achievement of pre-agreed performance targets.

The acquisition will be funded from cash recently received by Kingswood from the issue of 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"). Kingswood's partnership with Pollen Street grows in strength, and to date has provided growth equity of £44.8 million to support existing and future acquisitions.

For further details, please contact:

About Kingswood

Kingswood Holdings Limited (trading as Kingswood) is an AIM-listed (AIM: KWG) international fully integrated wealth management group with circa £6.2 billion of Assets under Advice and Management. It services circa 8,600 clients from a growing network of offices in the UK including Abingdon, Beverley, Darlington, Derby, Grimsby, Hull, Lincoln, London, Maidstone, Newcastle, Sheffield (2), Worcester and York with overseas 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

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 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.