Mergers and acquisitions  

Wealth manager gains £320m assets in IFA deal

Wealth manager gains £320m assets in IFA deal

Wealth manager Kingswood Holdings is set to acquire a Surrey-based IFA in a deal worth up to £4.6m. 

The purchase of Regency Investment Services Limited is still subject to regulatory approval but once completed will add £320m in assets under management to the company. 

Kingswood will also gain six IFAs and around 1,000 clients as part of the deal, with Regency's managing director Dominique Vinecombe set to stay on with the firm once purchased. 

Gary Wilder, chief executive at Kingswood, said the deal was part of a "robust pipeline" of acquisition opportunities at Kingswood, with the wealth manager currently exclusively negotiating three deals in the UK. 

The company has been vocal in recent years about its plans expand through acquisition in both the UK and US, securing £80m of funding in September last year with investment management firm Pollen Street Capital to fund its pipeline. 

Mr Wilder said: "There is 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."

Kingswood is set to pay £3.45m over a three-year period for Regency, with £1.38m payable initially and the balance to be paid on a deferred basis depending on performance targets and revenue in the coming years. 

But the wealth manager said an additional deferred payment of £1.2m could potentially be payable at the end of the three-year period if the firm exceeded is targets. 

Kingswood said the deal had seen its assets under management grow to £5bn with a client-facing advice team of 67 staff. 

Patrick Goulding, chief financial officer and platform chief executive at Kingswood, said: "We are delighted Dominique will remain with Kingswood and continue to focus on delivering exceptional quality service to Regency's client base.

"The Kingswood model is designed to free Dominique and other advisers to focus on their clients, and provide a centralised, efficient support infrastructure to manage the routine but time consuming tasks required across compliance, finance, human resources, risk and technology."

rachel.mortimer@ft.com 

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