Wealth management consolidator Kingswood has expanded its US operations with a multi-million dollar deal to take majority ownership of Manhattan Harbor Capital.
Kingswood will own 50.1% of the US wealth manager which will be renamed Kingswood US.
It was the deal was a "giant step" in its US expansion strategy and said up to $8m (£6.1m) if additional capital would be invested to support further "substantial" US organic growth.
In May this year, Kingswood announced its intention to acquire Chalice Capital Partners and Chalice Wealth Advisors, the planned increase in Kingswood's interest in Manhattan Harbor Capital from 7% to 20%, and the plan to contemporaneously fold Chalice into MHC, increasing Kingswood's interest in MHC to above 50%.
An announcement to the stock exchange this morning (12 August) confirmed the deal would proceed, subject to regulatory approval.
Mike Nessim will continue as managing partner of the enlarged Kingswood US business.
On completion, Kingswood US will have about 180 authorised representatives, with key offices in New York, Atlanta and San Diego.
Kingswood group chief executive Gary Wilder said: "We intend to grow this business substantially, leveraging our growing US distribution franchise. I have no doubt the capital we deploy will drive exceptional organic growth across the Kingswood US platform. This reflects the desire of both parties to develop a highly accretive global platform providing clients access to investment products and services in major US and UK markets."
He added: "Kingswood's enhanced investment in Kingswood US will further cement a key, strategic foothold in the largest global wealth and investment management market, differentiate us from our peers and support our aspirations of asset linking and cross-selling services.
"This investment and intention to fund further growth equity is a major statement of intent regarding our US expansion plans and puts us in a strong position to execute our US strategy, supported by the in-place, operating and management platform.
"Mike and his team will oversee acquired entities and focus on delivering Kingswood US's full-service brokerage, investment advisory and investment banking proposition to clients. Combined with Derek Bruton, who joined our US business with the Chalice acquisition, we now have considerable industry knowledge and experience to deliver a successful US outcome for the Kingswood Group and I'm greatly looking forward to working with them."
Mike Nessim, Managing Partner of Kingswood US commented: "This partnership with the Kingswood listed entity is beneficial in so many ways, and a major advantage in my strategy to boost AUM, accelerate adviser recruitment, continue to substantially build our investment banking business nationwide and achieve a significant foothold in the largest wealth management market globally."
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