NEW YORK - In a move that reshapes the wealth management landscape, Wentworth Management Services LLC and Kingswood Acquisition Corp. (OTCE: KWAC) have successfully completed their merger, resulting in the formation of Binah Capital Group.
The new entity, which will be publicly traded on the NASDAQ under the ticker NASDAQ: BCG, boasts an impressive $23 billion in assets under management (AUM) and a pro forma enterprise value of $208 million.
The transaction marks Wentworth's transition to a public company, with both Wentworth and KWAC becoming wholly owned subsidiaries of Binah Capital Group, Inc. This merger brings together approximately 1,900 individuals across the financial services industries, including Wentworth's four broker-dealers, which operate 535 offices across all 50 states.
Binah Capital will continue to offer a range of operating models for financial advisors, including a hybrid open architecture platform, independent registered status, and a W2 advisor model. The entity aims to provide financial advisors with comprehensive tools and support to foster growth and success.
Craig Gould, previously President of Wentworth, steps in as CEO of Binah Capital, with David Shane as CFO. The executive management team, drawn from Wentworth's C-suite, will report to Gould and Shane.
The merger also sees the UK-based KPI Group and HSQ, advised by Pollen Street Capital, as major founding partners. Michael Nessim, a founding partner and CEO of KWAC, will not join Binah Capital's management but will remain a shareholder. Nessim continues as CEO and Managing Partner of Kingswood U.S., a separate wealth management enterprise not involved in the transaction.
Binah Capital's leadership expresses optimism about leveraging public capital for growth initiatives and strategic mergers and acquisitions, aiming to create value for financial advisors, clients, and shareholders.
The completion of this merger is the result of extensive efforts by the teams involved, with special acknowledgement to Gary Wilder, Mike Nessim, David Hudd, and Jeremy Wilder from KWAC, and the team from Pollen Street.
Advisors to the deal included Oppenheimer & Co. Inc. as exclusive financial advisor to Kingswood Acquisition Corp., with SPAC Advisory Partners LLC and Odeon Capital Group LLC as capital markets advisors. Legal counsel was provided by Shearman and Sterling LLP for Kingswood Acquisition Corp., and DLA Piper LLP (US) for Wentworth Management Services LLC.
This merger is based on a press release statement and includes forward-looking statements that involve risks and uncertainties. The company cautions that actual results could differ materially from those anticipated in these forward-looking statements.
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