Kingswood enters Ireland with €25m adviser purchase

Kingswood will soon enter the Irish advisory market with its purchase of Dublin-based financial planning firm Moloney Investments, which is adding €700m (£635m) of assets under advisory to its books.

The deal, which is still subject to regulatory approval, will see Kingswood take a 70% stake in the business for a total cash consideration of €25.8m (£23.4m). Existing shareholders will retain the remaining 30%.

Kingswood has arranged a new credit facility to fund the acquisition, its seventh this year. The credit facility is not yet complete, but the consolidator said it expects it to be completed before its final deal closes.

Moloney Investments is adding 54 staff and 18 advisors to Kingswood, bringing its team of client-facing advisors to more than 100.

It also brings the company’s funds under management to around £7.8 billion. Meanwhile, assets under advisory will now stand at £10bn.

Kingswood said with the Irish wealth management market reflecting M&A trends in the UK, Moloney Investments offers an “attractive platform for further consolidation” in addition to Kingswood’s existing strategy in the UK. United.

Earlier this month, fellow national consultancy Fairstone bought Dublin-based Pax Financial in a deal that added €200m (£174.8m) to its assets under management.

As well as extending its services to Ireland, a wealth management market Kingswood has valued at £36bn (€40bn), Moloney Investments is also offering a ‘full service’ – including planning financial, general insurance and protection, as well as investment, pension, and mortgage advice.

There are also two key cross-selling opportunities. Moloney Investments will have the opportunity to benefit from Kingswood’s in-house investment proposition, and Kingswood’s clients will conversely benefit from the distribution of insurance products.

Founded in 1993, Moloney Investments posted earnings before interest, tax, depreciation and amortization of €4m (£3.6m) at the end of April.

After the acquisition, Moloney Investments will continue to operate from its existing premises and will be led by the same team that has served clients since the company’s inception.

“MMPI [Moloney Investments] provides access to the attractive Irish wealth management market while offering multiple new avenues for growth,” Kingswood chief executive David Lawrence said today (September 26).

“Bryan Moloney and his management team have done an outstanding job of building MMPI into a successful, scaled and differentiated financial advisory group renowned for exceptional client service.”

Lawrence also confirmed that in addition to its first purchase in the Irish market, Kingswood has a “strong pipeline of business with eight further potential acquisitions in exclusive due diligence”.

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