CompaniesJun 25 2020

Kingswood buys adviser in £18m deal

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Kingswood buys adviser in £18m deal
ByRachel Mortimer

Wealth manager Kingswood Holdings has acquired a Yorkshire-based IFA in a deal worth close to £18m and which has doubled the company's advice business in size.  

In an update to the market this morning (June 25) Kingswood announced the purchase of Sterling Trust Financial Consulting Limited had added 22 advisers, 5,000 clients and £1.2bn assets under management to the company.  

The acquisition was agreed for a cash consideration of £17.75m. An additional deferred payment of maximum £1.775m is payable over a three-year period subject to achievement of an excess EBITDA target over that period.

In September last year Kingswood secured £80m of funding with investment management firm Pollen Street Capital to fund its pipeline of acquisitions. 

The Sterling deal sees Kingswood, which operates in the UK and US, boost its client-facing advice team to 62 people and funds under management to £4.8bn across a 16,000 client base. 

Gary Wilder, group chief executive of Kingswood, said: "This is a transformative transaction for the Kingswood Group, doubling our wealth advisory business and providing us with an opportunity to own a profitable regional financial planning business with built-in expertise and capacity to expand.

"There is also a major opportunity over time to migrate existing and new clients to Kingwood's extensive and growing range of managed investment solutions on our DFM platform, underpinning the value of a fully integrated wealth and investment management business.

"We have a robust pipeline of further acquisition opportunities in the UK and US that we are reviewing; and we have three transactions under exclusive due diligence in the UK."

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