UK's Kingswood buys second US adviser

UK's Kingswood buys second US adviser

UK consolidator IFA firm Kingwood has agreed to purchase a Califorian advisory firm, for a sum expetd to total $4m.

The AIM-listed company announced that it has bought an 85% stake in San Diego-based Chalice Wealth Advisors and Chalice Capital Partners and subject to US regulatory approval.

Kingswood told market on Friday that said the total consideration was $4m (£3.1m), with an initial $1m payable on completion of the acquisition in the form of a promissory note, secured by the assets of San Diego-based Chalice, and the balance payable on a deferred basis subject to regulatory approval from FINRA and Chalice meeting pre-agreed asset migration, revenue, and EBITDA hurdles.

Second US purchase

It is the second time that Kingswood - which has been on an acquisition spree in 2019 - has purchased a US-based company, this year following the   deal with New York-based advice firm Manhattan Harbor.

Chalice co-founder Derek Bruton will become chief executive of the acquired business, with Kingswood planning to use the company as one of its centralised hubs for future acquisitions and product offerings in the US.

Gary Wilder, Kingswood's Group chief executive, said: "The advantages of this new West Coast hub are that it is immediately earnings accretive with a strong management team that has significant experience in roll-up and consolidation strategies

"Derek's experience and understanding of how to scale a business, work effectively with growing financial advisers, and source and manage superior talent will be instrumental to our success.

"The acquisition complements the group's strategy of seeking new distribution channels for its expanding products and wealth management solutions."

Chalice has assets under management of $1.15bn (£900m) and the combined platform serves 50 independent financial advisers


Kingswood has expanded throughout the year partly thanks to £80m of acquisition funding from investment management firm Pollen Street Capital.

It also said its largest shareholder KPI had injected new capital, taking its total investment to £15m. Acquisitions have followed with the Manhattan Harbor Capital deal in May followed by the purchase of Sheffield-based IFA WFI Financial, bought in September for £14m, and preceeded by the February purchase of Oxford-based adviser Thomas & Co for £3.3m.

East Yorkshire adviser firm, Marchant McKechnie, was also added to the Kingswood ranks in October 2018 for £4m.