Kingswood Holdings Limited (AIM: KWG), the integrated wealth management group, is delighted to announce that, further to the announcement dated 4 September 2019, it has completed the acquisition of the business and assets of WFI Financial (“WFI”), an independent regional financial planning business based in Sheffield with offices also in Derby, Lincoln and Grimsby (the “Acquisition”).
The Acquisition represents the continuation of the Group’s expansion of its national wealth management footprint to the Midlands and the North. The Acquisition will be immediately accretive to the Group.
WFI has 16 financial planners and 17 support staff and manage in excess of £550 million AUM/AUA from over 970 family clients. WFI has a very successful track record of profitability and growth through an expanded advisory platform, a Centralised Investment Proposition and a lean operating structure. The Group now has c. 5,500 active clients and AUM/AUA of £2.5bn.
Pending the satisfaction of the FCA condition relating to Pollen Street’s investment in Convertible Preference Shares, the Company and Pollen Street have elected to fund the Acquisition by way of a six-month £3.58 million secured bridge finance facility from Pollen Street, with a 5% rate of interest (prior to any compounding of interest). Pollen Street has the option to capitalise the facility into Convertible Preference Shares if the FCA condition is satisfied within the six month term of the facility.