Kingswood Announces Further US Investment
- Kingswood takes another giant step in US expansion strategy
- Definitive agreement to acquire majority 50.1% interest in Manhattan Harbor Capital
- Manhattan Harbor Capital to be renamed Kingswood US
- Funded the first deferred consideration payment for Chalice, the business is to be folded into Kingswood US, subject to regulatory approval
- Up to $8.0 million (£6.1 million) additional capital to be invested to support further substantial US organic growth
NEW YORK, NY, Sept. 25, 2020 (GLOBE NEWSWIRE) -- via NewMediaWire -- On 5 May 2020, Kingswood Holdings Limited (AIM: KWG) announced the formal closing of its acquisition of Chalice Capital Partners and Chalice Wealth Advisors (together "Chalice"), the planned increase in Kingswood’s interest in Manhattan Harbor Capital ("MHC") from 7% to 20%, and the plan to contemporaneously fold Chalice into MHC, increasing Kingswood's interest in MHC to above 50%.
Kingswood today announces that, subject to regulatory approval, it will achieve this majority ownership in MHC.
This 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 (£3.1 million). This is subject to FINRA regulatory approval. A minimum of $1.1m (£0.8 million) additional capital will be funded into MHC at closing taking Kingswood’s interest to 50.1%.
MHC will be rebranded Kingswood US and provides the Group with a strong, robust and well-capitalised foundation to accelerate its US growth strategy including best in class, full service operational and technology infrastructure.
The Company intends to contribute up to $8.0 million (£6.1 million) of additional growth equity to further build US distribution channels through active adviser recruitment and acquisitions. If all capital is approved and fully deployed, the Kingswood Group is projected to own approximately 67% of the integrated Kingswood US financial services platform.
Kingswood US comprises strong Independent Broker Dealer (“IBD”) and Registered Investment Adviser (“RIA”) businesses across the US with key hubs in Atlanta, New York and San Diego. In addition it incorporates Kingswood Capital Markets, a national Investment Banking platform now supported by significant regulatory capital to leverage our expanding distribution channels and drive growth across equity and debt advisory, capital raising and M&A.