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Kingswood Acquisition Corp., the particular function acquisition firm (SPAC) sponsored by the foremost shareholders in British wealth administration agency Kingswood Group and a sister firm to Kingswood U.S., has closed on its merger with dealer/vendor aggregator Wentworth Administration Companies. The deal takes Wentworth, which is able to now function as Binah Capital Group, public, and it begins buying and selling Tuesday beneath the ticker BCG.
The deal values the corporate at $208 million, and the mixed entity contains 1,900 monetary advisors and about $23 billion in property beneath administration. Wentworth President Craig Gould will function Binah’s new chief govt, whereas David Shane, the previous chief monetary officer of Sanctuary Wealth, would be the firm’s CFO.
Larry Roth, lead director of the Kingswood SPAC and managing companion of RLR Strategic Companions, is not going to function govt chairman of Binah, as earlier filings indicated.
“Because the potential govt chair position was first disclosed in December 2022, various board appointments for Larry Roth and strategic engagements for RLR emerged that required Larry’s bandwidth and focus,” in response to a supply acquainted with RLR Strategic Companions. “In consequence, he determined to step again from the potential govt chair position, however he stays a major shareholder in Binah Capital who’s deeply supportive of, and invested in, the corporate’s future success.”
The Kingswood SPAC management staff can be shareholders within the firm, however not a part of Binah’s administration. Wentworth’s C-suite staff will grow to be Binah’s govt administration staff, reporting to Gould and Shane.
Wentworth has 4 dealer/sellers, together with PKS Investments, World Fairness Group, Cabot Lodge and Unbiased Planners Group, throughout 535 places of work in all 50 states. It has a number of advisor affiliation fashions, together with a hybrid platform, impartial registered standing and a W2 mannequin. The b/ds will proceed to function beneath their present manufacturers and administration. Binah may have a number of custodial and clearing preparations.
“Underneath our new company construction, which we consider permits us to readily entry public capital to fund future development initiatives and operational enhancements, the corporate can be properly positioned to drive worth for the monetary advisors we assist, their shoppers and our shareholders,” Gould stated in a press release. “We may also put capital to work to have interaction in strategic and opportunistic M&A exercise that generates considerably larger development alternatives for our agency and monetary advisors.”
Kingswood launched its SPAC in November 2020, saying it had efficiently raised $115 million in its preliminary public providing and would use proceeds from the general public markets to put money into U.S.-based RIAs and wealth administration companies. Roth, the previous CEO of Cetera Monetary Group, was introduced in as lead director.
In July 2022, Wentworth entered into an settlement to merge with the SPAC.
The capital raised from the IPO can be used to wash up Wentworth’s steadiness sheet, rent extra advisors and develop the enterprise. An investor presentation outlined various Wentworth referral companions, together with Dynasty Monetary Companions, Constancy, Charles Schwab and Focus Monetary Companions.
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