Consolidator  

Kingswood sets sights on £5bn Aum this year

Kingswood sets sights on £5bn Aum this year

Wealth manager Kingswood has set its sights on doubling its assets under management in the UK to more than £5bn this year as the company pushes full speed ahead on its expansion plans.

The consolidator completed a string of acquisitions last year and currently manages assets close to £2.5bn in the UK, which it expects to at least double by the end of the year as its "very active" pipeline comes to fruition.

Last year the company hit the US as part of its international expansion plans, with ambitions to manage $30bn (£23bn) in assets across the pond by 2023.

Chief executive Gary Wilder and chief financial officer Patrick Goulding told FTAdviser these plans were expected to drive an ambition to manage $50bn (£38.7bn) assets globally within the next five years, two thirds of which would be in the US.

Mr Wilder and Mr Goulding were confident these targets could be achieved, with a current acquisition pipeline of 20 deals in the UK at various stages. 

In September last year Kingswood confirmed it had secured £80m to fund its pipeline in a deal with investment management firm Pollen Street Capital, hailing the fundraising as a "hugely significant milestone".

Earlier this month Mr Wilder said he expected this funding to be fully allocated to deals within 18 months. 

In September last year the AIM-listed firm announced it had bought Sheffield-based WFI Financial in a deal worth up to £14m, which brought with it a client base of 5,500. 

Kingswood's acquisition strategy is to target IFAs in their mid-50s, who then stay on and help grow the business after purchase. 

In an update towards the end of last year the company said: "While UK IFA consolidation is not new, Kingswood’s group structure allows it to offer generous potential upside opportunities to IFA principals aiming to sell their business.

"As a consequence, Kingswood provides large potential growth opportunities for IFAs in their mid-50s as opposed to the more widely implemented ‘bolt-on’ model where acquired IFAs, often in their mid-60s, are forced to integrate into a large corporate-style culture." 

rachel.mortimer@ft.com 

What do you think about the issues raised by this story? Email us on fa.letters@ft.com to let us know.