Kingswood, the UK-based wealth manager, today announces that it has acquired a 7% stake in Manhattan Harbor Capital, providing Kingswood with a strategic foothold in the largest global wealth and investment management market.
Kingswood has immediately acquired a 7% interest in Manhattan Harbor with the ability in the coming months, subject to regulatory approval in the US and entirely at Kingswood's discretion, to achieve a 20% holding. Kingswood would only seek to increase its interest in Manhattan Harbor if the resultant transaction was below the thresholds of a reverse takeover as defined by the AIM Rules for Companies.
The acquisition creates an exciting new strategic partnership for Kingswood to scale and cross-sell its services internationally.
The deal is being completed by Kingswood's wholly owned US subsidiary, Kingswood US Holdings, for an initial consideration of $525,000, comprising a cash payment of $332,500 and a share element of $192,500 which will be satisfied through the issue of 1,654,787 new ordinary shares of 5 pence each at a price of 8.125 pence.
Manhattan Harbor is a holding company with operations in New York and Atlanta that will acquire, consolidate and manage independent Broker Dealers (IBDs) and Registered Investment Advisers (RIAs) across the US.
Najib Canaan, Kingswood's US CEO at Kingswood, said: "Michael is an experienced operator with a strong track record and we have selected him and Manhattan Harbor as our US strategic partner as we embark on our ambitious US expansion strategy."
Manhattan Harbor recently announced it has acquired a 90% interest in FINRA-registered broker dealer, Benchmark Investments, which provides full service securities brokerage and investment banking services to a broad-based group of individuals and corporate clients. Michael Nessim has transferred his prior business and clients to Benchmark, and now operates as an independent, fully licensed IBD, and will be immediately earnings accretive given these in place revenues.