Related Party Transaction

22 July 2024

KINGSWOOD HOLDINGS LIMITED

("Kingswood", the "Company" or the "Group")

Related Party Transaction

Kingswood Holdings Limited (AIM: KWG), the international, fully integrated wealth and investment management group, announces that Kingswood Capital Partners, LLC, a wholly-owned subsidiary of Kingswood US, LLC ("KUS"), which is 50.1% owned by Kingswood, has entered into a Foreign Finders Agreement ("FFA") with KPI (Nominees) Limited ("KPI").

Pursuant to the FFA, for each referral made by KPI to KUS, a proportion of the fees generated by that introduction will be payable by KUS to KPI. The quantum of that fee is agreed by KUS and KPI on each introduction, but such fees are only payable by KUS to KPI upon success, when income is earned by KUS. The FFA caps referral fees payable by KUS to KPI at $5m per annum and renews automatically each year, unless terminated by either party.

Gary Wilder and Jonathan Massing, who are Non-Executive Directors of Kingswood, are the beneficial owners of KPI which is also a substantial shareholder of Kingswood. Accordingly, entering into the FFA constitutes a related party transaction under Rule 13 of the AIM Rules for Companies.

​As such, the Directors of the Company (excluding Gary Wilder and Jonathan Massing) consider, having consulted with Cavendish Capital Markets Limited, the Company's Nominated Adviser, that the terms of the FFA are fair and reasonable insofar as the Company's shareholders are concerned.

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About Kingswood

Kingswood Holdings Limited (trading as Kingswood) is an AIM-listed (AIM: KWG) international fully integrated wealth management group. It services circa 20k clients from a growing network of offices across the UK with overseas offices in US, Ireland and South Africa.

Kingswood offers a range of trusted investment solutions to its clients, which range from private individuals to some of the UK's largest universities and institutions, including investment advice and management, personal and company pensions and wealth planning. Kingswood is focused on building on its position as a leading player in the wealth and investment management market through targeted acquisitions, creating a global business through strategic partnerships.