Kingswood will soon enter the Irish advice market with its purchase of Dublin-based financial planning firm Moloney Investments, which adds €700mn (£635mn) in assets under advice to its books.
The deal, which is still subject to regulatory approval, will see Kingswood take a 70 per cent stake in the business for a total cash consideration of €25.8mn (£23.4mn). Existing shareholders will retain the remaining 30 per cent.
Kingswood has set up a new debt facility to fund the acquisition, its seventh of this year. The debt facility is yet to complete, but the consolidator said it expects it to complete prior to its latest deal closing.
Moloney Investments adds 54 staff members and 18 advisers to Kingswood, boosting its client-facing advisory team to over 100.
It also brings the firm's funds under management to around £7.8bn. Meanwhile, assets under advice will now sit at £10bn.
Kingswood said with the Irish wealth management market mirroring merger and acquisition trends in the UK, Moloney Investments offers an “attractive platform for further consolidation” in addition to Kingswood's existing strategy in the UK.
Earlier this month, fellow national advice firm Fairstone bought Dublin-based Pax Financial in a deal which added €200mn (£174.8mn) to its assets under management.
As well as expanding its services to Ireland, a wealth management market Kingswood has valued at £36bn (€40bn), Moloney Investments also offers a “full” service - including financial planning, general and protection insurance, as well as investments, pensions, and mortgage advice.
There are two key cross-sell opportunities too. Moloney Investments will have the opportunity to benefit from Kingswood's in-house investment proposition, and Kingswood's clients will conversely benefit from insurance product distribution.
Founded in 1993, Moloney Investments posted earnings before interest, taxes, depreciation, and amortisation of €4mn (£3.6mn) at the end of April.
Post-acquisition, Moloney Investments will continue to operate from its existing premises and be led by the same team which have served its clients since the firm’s inception.
“MMPI [Moloney Investments] provides access to the attractive Irish wealth management market whilst also offering multiple new avenues for growth,” said Kingswood’s chief executive, David Lawrence, today (September 26).
“Bryan Moloney and his senior team have done an exceptional job building MMPI into a successful, scaled, and differentiated financial advisory group with a reputation for exceptional client service.”
Lawrence also confirmed in addition to its first Irish market purchase, Kingswood has a “strong pipeline of activity with a further eight potential acquisitions in exclusive due diligence”.
ruby.hinchliffe@ft.com
