Wealth manager Kingswood has raised up to £80m through funds managed and advised by investment company Pollen Street Capital.
The funds were raised through an issue of irredeemable convertible preference shares to certain investors and funds managed or advised by Pollen Street.
Kingswood said it now has a 'strong' foundation in place to grow and expand and the investment would fund future advice firm acquisitions.
The firm recently bought WFI Financial for £14m. Following completion of the acquisiton, Kingswood Holdings will have more than £2.5bn of assets under management (AUM) and assets under advice (AUA), with 5,500 active clients.
WFI has offices in Derby, Lincoln and Grimsby. It has AUM/AUA of more than £550m across 970 clients and has 37 partners and employees, including 16 financial planners and 19 support staff.
Kingswood said it considered a number of 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 that Kingswood decided could not be assured from other funding alternatives.
Kingswood Group CEO Gary Wilder said the firm believes Pollen Street will be an "excellent partner".
"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," he said.
Meanwhile, Pollen Street partner Howard Garland 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."
Combined five decades’ experience
Following Zurich acquisition
Firm's central hub
21% of people would rather see a dentist