Independent financial advisory business Sterling Trust has been bought out by AIM-listed wealth management group Kingswood in a near £18 million deal.
Sterling, described as a major regional platform, operates across Yorkshire and the North East, with a headquarters in Hessle, near Hull, and further offices in Darlington, Newcastle, Sheffield and York.
The acquisition widens Kingswood’s footprint, taking it to 14 locations across the 海角视频, with the work adding 33 per cent to book values.
It has also boosted the client-facing advisory team to 62, as it increased managed and advised funds to £4.8 billion.
A total of 22 financial advisers were part of the Sterling team, led by managing director Jeff Grantham, who will remain in an executive role.
Gary Wilder, group chief executive at Kingswood, said: “This is a transformative transaction for the Kingswood Group, doubling our wealth advisory business and providing us with an opportunity to own a profitable regional financial planning business with built-in expertise and capacity to expand. There is also a major opportunity over time to migrate existing and new clients to Kingwood’s extensive and growing range of managed investment solutions, underpinning the value of a fully integrated wealth and investment management business.
“We have a robust pipeline of further acquisition opportunities in the 海角视频 and US that we are reviewing; and we have three transactions under exclusive due diligence in the 海角视频.”
Kingswood, launched in 2010 as an investment management business, has grown through a number of acquisitions, listing in 2014, with 174 staff employed.
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As well as a City of London head office, it has a presence in South Africa as well as in the US.
Last year saw it secure a £80 million growth capital from global investor Pollen Street Capital
Buzz West, chairman at Kingswood, said: “We are delighted to complete the Sterling Trust acquisition and welcome Jeff Grantham and his team to the Kingswood family. They will be a magnificent addition to our business.”
The £17.75 million deal is structured around future performance, with an initial £7.25 million paid. Should it over-perform a further £1.75 million - 10 per cent - could be added up to June 2023.
Patrick Goulding, Kingswood’s group chief financial officer, said: “I have got to know Jeff well over recent months. He is an exceptional individual with a tremendous track record and a strong work ethic. We are delighted that he will remain with the group in an executive capacity post-integration and assume an expanded strategic role within our wealth business. “Sterling Trust’s excellent team will remain focused on their core strengths of client advice and business development. Advisers will continue to receive operational support and supervision from within the existing office network, with Kingswood centrally managing regulatory and compliance, finance, HR and IT responsibilities.”