The firm has raised the sum by way of an issue of irredeemable Convertible Preference Shares to certain investors and funds managed and/or advised by Pollen Street Capital in what the firm described as “a hugely significant milestone”.
Following investment and restructuring over the last two years, Kingswood says it now has “a strong foundation in place to grow and expand” and the investment will help the company fund acquisitions.
These include the recent purchase of the business and assets of WFI Financial, an independent regional Financial Planning business based in Sheffield with offices in Derby, Grimsby and Lincoln.
Pollen Street is an asset investment management company focused on the financial and business services sectors, with experience in specialty finance.
It was established in 2013 and now has over £2.6bn gross AUM across private equity and credit strategies.
Kingswood considered other fundraising options through institutional markets and investors, but the issue of irredeemable Convertible Preference Shares, convertible into Kingswood ordinary shares at 16.5p per share on or before December 31, 2023, provided the “certainty and timeliness” of funds that Kingswood believes could not be assured from other funding alternatives.
Under the terms of the investment, which is subject to shareholder approval, Pollen Street has a right to appoint up to two directors to the Kingswood Board.
Gary Wilder, group CEO at Kingswood, said: “We’re delighted to confirm the fundraising with Pollen Street.
“We believe they will be an excellent partner as we execute on our shared global vision for the Group.
“We have been extremely impressed by the depth of their industry knowledge, the thoroughness of their due diligence, and our shared belief in building a best in class global wealth management platform that delivers quality products to clients and outstanding shareholder value.
“We thank them for their efforts in getting to this significant milestone in Kingswood’s further development and the trust they have placed in the Board and its staff.
“This major investment by a global investor such as Pollen Street is a strong affirmation of the vision and growth strategy set by the Board at the beginning of the year.
“The level of commitment highlights the growth potential both Kingswood and Pollen Street see in our stock and the potential to add significant value for shareholders.”
Howard Garland, partner at Pollen Street Capital, said: "We believe the wider wealth management sector offers compelling opportunities for growth.
“The business has a clear strategy for the future and we are excited to have the chance to partner with Kingswood.
“Pollen Street has extensive expertise in building market leading companies both via acquisitions and through organic growth using technological innovation and we are convinced these skillsets and our capital commitment will enable the group to accelerate the implementation of their strategy.”
Kingswood says its vision is “to become a leading global provider of trusted wealth planning and investment management solutions to clients, underpinned by investment in people and innovation with technology supporting our advisers and clients”.
Buzz West, Kingswood chairman, said: “We’ve established an experienced team, an expanding product line and an international footprint which solidifies our growth plan.
“Our core proposition centres on primary offerings in wealth planning and investment management to deliver trusted financial solutions for clients.
“As we continue into the second half of the year, we look forward to further exciting announcements in terms of both domestic and international expansion and new investment products.”