Kingswood H. Regulatory News (KWG)

1st February 2022

KINGSWOOD HOLDINGS LIMITED

("Kingswood" or the "Company")

Acquisition of Allotts Financial Services Limited (AFS)

Kingswood announces the exchange of contracts for acquisition of Allotts Financial Services Limited (AFS)

AFS is a high quality, long established financial advisory firm based in Rotherham and serves clients covering primarily in South Yorkshire

The transaction boosts Kingswood's UK client facing advisory team to 83 people and increases UK funds under advice/management to £6.5bn billion from circa 16,640 active clients.

Kingswood Group assets under administration ("AuA") will total over £8.1bn from a combination of both global retail and institutional clients matching our ambition to grow globally as an international integrated full service wealth and investment management group

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Kingswood Holdings Limited (AIM: KWG), the international, fully integrated wealth and investment management group, is pleased to announce it has exchanged and completed the acquisition of Allotts Financial Services Limited ("AFS"). AFS is a high quality, long established financial advisory firm based in Rotherham and serves clients covering primarily in South Yorkshire.

David Lawrence, UK CEO at Kingswood, commented: "I am delighted to be welcoming the AFS team to Kingswood. Allott's has a great reputation for serving clients over many years and is a great addition to Kingswood's existing footprint in the wider Sheffield region. After this acquisition is concluded we will have 13 advisers meeting their client financial advice and investment needs.

"We remain committed to perpetuating our stated growth strategy within the UK and internationally. This is our second acquisition of 2022 and we continue to have a strong pipeline of high-quality UK opportunities under negotiation, five of which are in exclusive due diligence as we continue to grow our financial planning and investment management reach across the UK."

About Allots Financial Services Limited (AFS)

Set up in 1998, AFS provides independent financial advice to over 400 active clients and currently employs three advisers, with five support staff covering clients primarily in South Yorkshire with approximately £140m AUA. In the year ended 31 March 2021, AFS generated revenue of £791k and profit before tax of £355k.

Following regulatory approval, the business will be acquired for total cash consideration of up to £2.5m, payable over a two year period, £1.25m will be paid at closing and the balance paid on a deferred basis, some of which is subject to the achievement of pre-agreed performance targets.

Neil Highfield, speaking on behalf of AFS commented: "I feel this is an important and positive step forward for Allotts Financial Services. Kingswood share our own values & beliefs around providing an excellent service to clients and they will hugely benefit from their large support network and expertise in the financial services industry.''

Consideration

On completion, the acquisition will be funded from funds recently received by Kingswood from the issue of new convertible preference shares, under the terms of its Convertible Preference Share subscription agreement with HSQ INVESTMENT LIMITED, a wholly owned indirect subsidiary of funds managed and/or advised by Pollen Street Capital Limited ("Pollen Street"). Kingswood's partnership with Pollen Street grows in strength, and to date has provided growth equity of £77.4 million to support existing and future acquisitions.

ENDS

For further details, please contact:

About Kingswood

Kingswood Holdings Limited (trading as Kingswood) is an AIM-listed (AIM: KWG) international fully integrated wealth management group with circa £7.9bn billion of Assets under Advice and Management. It services circa 15,900 clients from a growing network of offices in the UK including Abingdon, Beverley, Conisbrough, Darlington, Derby, Grimsby, Harrogate, Hull, Lincoln, London, Maidstone, Newcastle, Sheffield (2), Worcester and York with overseas offices in Johannesburg, South Africa and Atlanta, New York and San Diego in US.

Kingswood offers a range of trusted investment solutions to its clients, which range from private individuals to some of the UK's largest universities and institutions, including investment advice and management, personal and company pensions and wealth planning. Kingswood is focused on becoming a leading player in the wealth and investment management market through targeted acquisitions in the UK and US, creating a global business through strategic partnerships.

Registered office address: Mont Crevelt House, Bulwer Avenue, St. Sampson, Guernsey, GY2 4LH

About Pollen Street

Pollen Street is an independent alternative investment management company, focused on accelerating the progress of the financial, business services and technology sectors. It was established in 2013 and manages over £3bn AUM across private equity and credit strategies on behalf of investors including leading public and corporate pension funds, insurance companies, Sovereign Wealth Funds, Endowment and Foundations, asset managers, banks, and family offices from around the world. Pollen Street has a team of over 70 professionals with offices in London and New York City.

www.pollencap.com