AIM-listed acquisitive wealth manager and Financial Planner Kingswood Holdings has secured a £4m debt facility with an affiliate of private equity firm HSQ Investments Limited.

Kingswood, which has around £12bn in assets under management, said the deal would provide additional working capital for its business which has 19,000 clients.

The company has expanded rapidly in recent times, acquiring over 20 firms many of them in the Financial Planning sector.

Kingswood said that the arrangement with HSQ, an affiliate of Pollen Street Capital, constitutes a related party transaction under Rule 13 of the AIM Rules for Companies.

The terms of the debt agreement include an interest rate of 12%, paid at maturity, with a repayment date by 29 October 2030.

The latest move follows a series of three other loan deals each announced by Kingswood earlier this year in February, May and August.

In July this year, previous Positive Solutions chief executive, Peter Coleman, was appointed as Kingswood’s interim CEO following the departure of former boss David Lawrence.

In the first six months of the year to June, Kingswood reported operating profits of £6.1m on revenues of £40.6m for the same period.