Kingswood : Investor and Analyst Presentation - June 2021

POSITIONED FOR GROWTH

I N V E S T O R & A N A L Y S T P R E S E N TAT I O N	JUNE 2 0 2 1

GROUP OVERVIEW

• Kingswood Holdings Limited (AIM:KWG) is an international wealth management

platform operating across the UK and US, with 64 advisers serving circa 8,000

clients in the UK and 206 registered representatives across the US

• The UK business offers wealth planning and investment management services to

individual clients, and a corporate proposition offering treasury and liquidity

management solutions to large institutions

• Kingswood operates a 4 point strategyinternationally for growth:

- Successful acquisition of wealth planning and investment management

firms (5 acquisitions completed in the UK over last 2 years)

- Organic growth, including aggressive recruitment and revenue cross-pollenisation

- Integratingand driving operational efficiency through functional scale

- Leveraging the benefits of vertical integration of its wealth planning

and investmentmanagementcapabilities

• Kingswood is focussed on building its international long term strategy centred around

vertical, complimentary, growth business lines in the independent retail wealth sector

from which we can create synergies and maximise recurring fee streams and drive

double digitEBITDAannual growth

• Kingswood is majority owned by two directors - Jonathan Massing and Gary Wilder

- through KPI (Nominees)Limited(c.66%)

Regional hubs

Satellite offices

Hull:

26 advisers

Sheffield:

18 advisers

Worcester:	London:
1 adviser	19 advisers San Diego, CA
	110 Registered Reps

L3Y share price performance

Operational hubs

OSJ

New York, NY:

96 Registered Reps

Atlanta, GA:

Operational Hub

• Pollen Street Capital can subscribe for up to £80 million in the form of convertible

preference shares to support acquisitionswith £45million drawn to date

UK	£4.5 bn	8,000	185	20+
	AuA	Clients	Employees	UK acquisition target
				pipeline
US	£1.6 bn	+1,000	21	5+
	AuA	Relationships	Employees	USacquisitiontarget
				pipeline

0.40

Market Cap:

£50m

0.30 Comps on a different slide

0.20

0.10

0.00

2

INVESTMENT CASE

1		Kingswood aspires to be a leading participant in wealth & investment management in the UK, US and
	Internationally providingwealth solutions to mass affluent individualsand large corporates
2		Joint UK, US and emerging international footprint allows Kingswood to tap into corridors of wealth
	in attractive, fast growing markets
		3		Large existing client base provides highly resilient cash flows through the cycle and strong and
			robustpipeline opportunities for new client business
		4	Solid track record of delivering value to clients through diverse wealth and investment
		management solutions
		5		Strategic and digital initiatives provide further growth opportunities to an already strong and
			robust new business pipeline
6		Highly attractive financial model with strong growth levers and predictablecash flows
7		Rigorous risk management framework with a strong, enterprise-wide commitment to
	CorporateSocial Responsibility(CSR) and Environment,Social, and Governance(ESG) principles

3

BOARD & MANAGEMENT TEAM

Board of Directors

Gary	Role: Group Chief Executive Officer
Wilder	Experience: Co-Founder of Kingswood Property Finance Limited Partnership.
30+ years of experience in financial services
Kenneth	Role: Non-Executive Chairman
"Buzz"	Experience: Numerous board positions. Founder and ex-chairman of AIM
West listed wealth manager Ashcourt Rowan
Jonathan	Role: Non-Executive Deputy Chairman
Experience: Corporate finance & acquisitions. Founder of Kingswood Property
Massing
Finance LP and established Kingswood Investment Partners Limited in 1998
Jonathan	Role: NED, Chair of Audit and Risk & Compliance Committees
Freeman	Experience: Extensive experience with listed companies, financial
	services and FCA regulated entities

UK Executive Team

David	Role: UK Chief Executive Officer
Experience: Numerous executive leadership positions with Lloyds Banking
Lawrence	Group most recently with Schroders Personal Wealth
Patrick	Role: Group Chief Financial Officer
Experience: 30 years in financial services. Senior roles at Morgan Stanley, Lend
Goulding
Lease, ING & Schroders
Harriet	Role: Chief Operating Officer
Experience: Previously COO of Private Client Investment
Griffin
Management at Charles Stanley
Richard	Role: Chief Risk Officer
Bernstein	Experience: Previously held senior risk roles at Close Brothers
	Asset Management

US Executive Team

Howard	Role: NED
Garland	Experience: Partner at Pollen Street Capital, numerous board positions
David	Role: NED
Hudd	Experience: Capital markets specialist, Senior Counsel & former Deputy CEO
	of Hogan Lovells

Lindsey	Role: NED
Experience: Co-Founder and Managing Partner of Pollen Street Capital.
McMurray
Chairman of PSC PE & Credit investment committees
Robert	Role: NED
Experience: Co-CEO of UK Agriculture Finance, founder of Global
Suss
Tower Solutions, previously an MD at Goldman Sachs Asset Management

Michael

Nessim

Val Peters Rayevsky

Jeremy

Wilder

David

Martin

Mike Alsoraimi

Role: US Chief Executive Officer

Experience: 24 years in financial services. Previously a registered principal for several independent broker-dealers

Role: US Chief Operating Officer

Experience: Previously branch manager of Office of Supervisory Jurisdiction for an independent broker-dealer

Role: US Chief Legal Officer

Experience: Previously legal counsel for AR Global Investments & Hospitality Investor's Trust

Role: US Co-Chief Compliance Officer

Experience: Previously Chief Executive Officer of American Global Wealth Management & Chief Compliance Officer of Keystone Capital

Role: US Co-Chief Compliance Officer

Experience: Previously TD Ameritrade, AXA & CUSO Financial

Services

4

UK PROPOSITION

Kingswood will "win" by a clear focus on advice and discretionary investment management services, both of which have significant upside opportunity

UK advice market remains ripe for ongoing consolidation

IFA firms by number of advisers employed

Advice

80-100 bps

• Advice revenues are sticky and recurring

• AuM when attached to an advice

relationship similarly sticky

11%

Discretionary

• Integrationof these two elements of the

value chain is Kingswoodprimaryfocus

27,000+

> 5 advisers

Investment

Management

15-25 bps

Platform

20-30 bps

Asset Manager 50-60 bps

• Platform services increasingly commoditised and
	at lower margins
•	Winners will have significant scale,
	differentiating only by service provided
•	Kingswood will use its scale to negotiate

leading prices

• Asset management is highly specialised and under margin and value for money pressures
• Kingswood will use its scale to negotiate leading prices

IFAs		< 5 advisers

89%

Core consolidation opportunity

• 89%of UK IFA firms have less than 5 advisers
• "Three in five financialplanners looking to sell"(1)
• Advisers looking to retire or lower burden of admin/costs seeking an exit
• Large pool of potential acquisitions availableto pursue

7

1. FT Adviser.