Kingswood Acquisition Corp. is acquiring Wentworth Management Services, paving the way for the combined company to be publically traded under the name of the parent company, Binah Capital Group. In conjunction with the acquisition, financial industry veteran Larry Roth has been named executive chairman of Binah.
The transaction, and other new appointments that were announced today, are in line with aggressive growth plans for Binah and its subsidiaries, which already have an impressive growth record, Roth said in an interview.
Wentworth is a consolidator of retail wealth management businesses that owns and operates four broker-dealers located in 535 offices in all 50 states. Wentworth's firms encompass 1,900 securities registered financial advisors. Upon the conclusion of the acquisition process, Kingswood Acquisition Corp. and Wentworth will become wholly owned subsidiaries of Binah Capital Group.
“The purpose of the acquisition and of going public is to obtain an infusion of capital” that was not available before, Roth said. “Our first order of business is to continue to attract the kind of advisors we are already working with.”
Roth’s role in the new firm will be to concentrate on strategy and work with the firm’s partner.
Craig Gould has been named CEO and David Shane has been named CFO of the Binah Capital Group. The existing operational management teams of Wentworth's broker-dealers will remain in place.
Gold, who currently serves as president of Wentworth, will be in charge of the day-to-day operation of the firm. Shane is the former CFO of Sanctuary Wealth.
Roth has more than 30 years of experience as an operator, dealmaker, strategic advisor and entrepreneur in the wealth management space. He previously served as CEO of AIG Advisor Group and of Cetera Financial Group, two of the largest independent wealth management enterprises in the country.
He is the founder and managing partner of RLR Strategic Partners, a private investment firm focused on businesses seeking to grow in the wealth management space, and a provider of M&A advisory solutions in association with Berkshire Global Advisors. He will remain in his position at RLR Strategic Partners.
Roth has provided strategic advice as a board member to some of the most high-profile organizations and businesses within the securities industry, successfully orchestrating more than 20 acquisition and disposition transactions. He successfully executed Cetera's strategic transformation into a privately held company under new ownership and with stronger financial resources and an exclusive focus on the retail financial advice industry.
“Kingswood Acquisition Corp. has unparalleled strategic relationships and expertise built on a global scale. Combining these strengths with Wentworth, a fast-growing firm with significant continued expansion potential, creates a unique industry leader with a very appealing value proposition for all of its stakeholders. From technology enhancements and further acquisitions, to seamlessly accessing public capital to fuel opportunistic growth, the combined firm is well-positioned for future success,” Roth said in a statement.
The combination also shows that Binah feels strongly that the financial industry has a positive future, Roth said.
Binah will be able to provide techâenabled capabilities that allow for seamless integration for advisors; an open architecture that offers access to an array of solutions for advisors and their clients through product offerings and shared services; and a financial model that is expected to experience organic growth, highly recurring revenues and expanding margins, Binah said.