Kingswood Holdings’ acquisition of Moloney Investments, the D4 financial adviser trading as MMPI, will mint several millionaires among the shareholder directors.
Kingswood Holdings, a plc quoted on the AIM stock market in London, has agreed to pay €25.8m to acquire 70% of MMPI, formerly known as Moloney Mortgages Pensions and Investments.
According to a Kingswood statement, the existing shareholders will retain the remaining 30% of the equity “and benefit from the growth in the business as both management teams work together to grow MMPI and the wider Kingswood group both organically and through further acquisitions”.
Established in 1993, and based on Morehampton Road adjacent to Donnybrook Fair, MMPI’s turnover in 2020 was €2.3m though pre-Covid in 2019 turnover was €4.1m.
Kingswood said that on a pro forma basis, for the 12 months to April 2022 MMPI had EBITDA of €4m and in excess of €700m assets under advice.
In Association with
Subject to regulatory clearance, post-acquisition MMPI will continue to operate from its existing premises and be led by the same team that have been with the business since 1993.
The selling shareholders in Moloney Investments, the MMPI parent company, are Bryan Moloney (63.8%), Thomas Horkan (15.0%), David Swaine (10.0%), Gerard Lawlor (5.2%), Peter Hanrahan (5.0%) and Niall Ringrose (1.0%).
Bryan Moloney, MMPI CEO, stated: “This is an exciting development for the business providing additional expertise, capability, and funding to continue MMPI's long term track record of both organic and inorganic growth, whilst supporting our vision of serving private and corporate clients with a best in class platform and service.
“Kingswood shares our vision and beliefs of empowering its employees to provide excellent client service and I am confident that their investment provides a great outcome for both our employees and clients alike.”
In 2020, MMPI reported a gross profit margin of 60%, down from 72% the prior year. Net worth in December 2020 was €2.7m, including €1m balance sheet cash.
Kingswood said the deal will boost its client-facing advisory team to over 100 people and funds under advice/management to over £7.8bn across both the UK and Ireland.
CEO David Lawrence commented: "I am delighted to announce our acquisition of MMPI, Kingswood's seventh acquisition of the year and a highly strategic investment for the group. MMPI provides access to the attractive Irish wealth management market whilst also offering multiple new avenues for growth.
“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. I look forward to working with Bryan and his team to continue the Kingswood growth story.”
MMPI provides financial planning, general and protection insurance, as well as investments, pensions, and mortgage advice to principally high net worth individuals. MMPI currently employs 54 people, including 18 advisors.
Kingswood said Ireland is a €40bn wealth management market, “with the mass affluent segment of the market in particular experiencing persistent growth”.
The purchaser, which is funding the deal from borrowings, anticipates opportunity for MMPI's clients to benefit from Kingswood's in-house investment proposition and Kingswood's clients to conversely benefit from MMPI's insurance and other product distribution capabilities.
