As part of its investment and expansion into the US, Kingswood has made three deals.
Kingswood has acquired Chalice Capital Partners and Chalice Wealth Advisors (Chalice). In addition, it has increased its interest in Manhattan Harbor Capital (MHC) from 7% to 20% and plans to fold Chalice into the firm. As a result, its interest would rise to above 50%.
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This means that Kingswood would achieve majority ownership in MHC as part of the US expansion.
The plan will be achieved by acquiring a further 4% of MHC prior to the fold in of Chalice, taking the pre-combination holding to 24%. Kingswood has then agreed to contribute its existing Chalice platform (with its businesses now renamed Kingswood Capital Partners and Kingswood Wealth Advisors) into MHC at a valuation of $4.0 million (£3.1m). This is subject to FINRA regulatory approval. A minimum of $1.1m additional capital will be funded into MHC at closing taking Kingswood’s interest to 50.1%.
MHC will be rebranded Kingswood US and the company intends to contribute up to $8m of additional growth equity. On completion, the company is set to have 180 authorised representatives across New York, Atlanta, and San Diego.
Gary Wilder, Group CEO at Kingswood, said: “We are absolutely delighted to increase our investment and finalise agreements to acquire a majority interest in the re-named Kingswood US. Mike and his team have continually shown that they are highly talented, best in class operators in the IBD, RIA space and the recently formed full-service Investment banking business, Kingswood Capital Markets. We intend to grow this business substantially, leveraging our growing US distribution franchise. I have no doubt the capital we deploy will drive exceptional organic growth across the Kingswood US platform. This reflects the desire of both parties to develop a highly accretive global platform providing clients access to investment products and services in major US and UK markets.”
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By GlobalDataMike Nessim, managing partner of Kingswood US, added: “This partnership with the Kingswood listed entity is beneficial in so many ways, and a major advantage in my strategy to boost AuM, accelerate adviser recruitment, continue to substantially build our investment banking business nationwide and achieve a significant foothold in the largest wealth management market globally. I am incredibly excited to be partnering with the Kingswood Group and exploring the many opportunities for our integrated broker dealer, advisory and investment banking platform. The potential is enormous, and we now have the backing to deliver the next phase of our ambitious business plan.”
