Kingswood has acquired another advice firm in the UK as it aims for 10 new deals over the next 12 months.
This morning (May 12), the firm bought Vincent & Co Ltd, a Lincolnshire-based adviser firm, in a deal worth £421,000, with £211,000 to be paid upon deal completion and the remainder over a two-year period.
Vincent & Co brings with it 130 clients, £25mn of assets under management, and annual revenues and profits before tax of £135,000 and £83,000 respectively.
Kingswood's near-term target is to build its UK assets in excess of £10bn. In addition, it is aiming to manage £14bn globally. At present, it manages £9bn of assets and around 19,000 clients globally.
So far, the firm has acquired nine businesses in the UK, including Vincent & Co, since its UK chief executive, David Lawrence, joined the business in December 2020.
Currently, four potential acquisitions are sitting in the due diligence phase. Kingswood has drawn a further sleeve of money from Pollen Street Capital which Lawrence said was “more than enough” to fund the firm’s deal pipeline.
Back in September 2019, Kingswood received an £80mn commitment from the investment management firm. Some £77.4mn of the £80mn has been set aside for inorganic growth - some of which has been dipped into.
“We’d love to be in all parts of the UK,” Lawrence told FTAdviser. “All of our pipeline opportunities are in the south as we rebalance what was a more dominant northern presence.”
Typically, Kingswood has been buying businesses with two to four advisers in regional locations across the UK. More recent deals have been based in and around Essex in line with the firm’s southern expansion.
Lawrence said “in the sea” of all these deals, the firm’s acquisition of IBOSS Asset Management last year was “key”. The firm provides around 50 IFAs with investment solutions nationally.
“It gives us a great investment solution for clients. It gives IBOSS a great opportunity to help firms with exit strategies and capital raising at an earlier time than perhaps the business may have been doing,” the UK CEO explained.
“That’s quite new. The deal completed in December, but it’s a point of differentiation for Kingswood over other consolidators, because our focus is very heavily now on internal and open market investment management, as well as financial advice.”
For all Kingswood’s acquisitions in the UK so far, Lawrence’s mantra has been to keep the front end of the business as “sacrosanct”, meanwhile centralising its compliance, finance and human resources departments in order to free up advisers’ time.