Months after Kingswood announced its acquisition of Chalice Financial Network’s registered investment advisor and independent broker dealer in December, the London-based wealth management group closed on the deal Tuesday.
Chalice Wealth Advisors, an RIA, and Chalice Capital Partners, an IBD, are now part of Kingswood US along with Manhattan Harbor Capital, a holding company that provides investment advisory and brokerage services through its subsidiary Benchmark Investments. Derek Bruton, the former president of Chalice Financial Network, is now CEO of Kingswood US. What's more, advisors from the Chalice RIA and IBD will continue to use the Chalice Financial Network's digital marketplace and its group heallth insurance as Kingswood US is now CFN's enterprise client. According to a press release from CFN, membership will be expanded to Kingswood affiliates.
Collectively, the three businesses have 180 registered representatives located in San Diego, Atlanta and New York managing $2 billion in assets.
Kingswood took a 7% stake in Manhattan Harbor initially through a cash transaction and was set to increase its interest to 20% through equity. It will own 50.2% once it folds in the Chalice businesses, which it now wholly owns.
“To acquire a majority interest in MHC at an attractive discount relative to market reflects the desire of both parties to develop a highly accretive global platform providing clients access to investment product and services in major US and UK markets,” said Gary Wilder, CEO of Kingswood Holdings, in a statement.
“Kingswood’s enhanced investment in MHC will 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,” he said.
Wilder added that Michael Nessim, the head of the Manhattan Harbor unit, and his team will oversee acquired entities and provide brokerage banking services to clients.
Kingswood tried to enter the U.S. market once before when its subsidiary, European Wealth, attempted to buy Nessim’s former employer, Newbridge Securities, back in 2017. The deal fell through in 2018.