In the year ended December 31 2016, Newbridge reported full year revenue of $28 million and profit before tax of $500,000.

A UK-headquartered wealth manager that last month saw its chief executive exit plans to enter the US market with the acquisition of a broker-dealer and its affiliate investment advisor, a deal that would double its assets under management. 

European Wealth today announced its plans to buy Newbridge Securities, the broker-dealer, and Newbridge Financial Services, its investment advisory business, to allow it “direct access to every US state (excluding Maine)” and grow its AuM to around $4 billion.

Newbridge has a nationwide network of more than 220 advisors and associates, over 12,000 clients and oversees some $1.7 billion in assets. It holds a licence to operate in all states, apart from Maine. 

European Wealth has hinted that further acquisitions could also be on the cards. 

“We anticipate following this deal with further exciting accretive acquisitions in the future, strengthening our position in major international markets, product offering and AUM,” said Marianne Ismail, European Wealth’s newly-appointed chief executive. “It significantly increases our global footprint by gaining immediate access to the largest wealth management market in the world, which we intend to build and scale substantially.”

She continued: “The acquisition will empower [European Wealth] to diversify and grow its earning base, international position and influence to attract more clients, cross-sell products and significantly increase our AuM.”

The announcement of the planned acquisition comes at a time of change for European Wealth, as the AIM-listed firm’s founder and former CEO, John Morton, stepped down from the helm late last month for undisclosed reasons. To read an interview with John Morton, click here.

To reflect the now “global nature” of its business, European Wealth will rebrand as Kingswood, subject to shareholder approval. 

Kingswood, a subsidiary of Kingswood Property Finance, in June took a 39.99 per cent stake in European Wealth after it sold some 48 million shares to raise funds to repay its debt, which included £2 million ($2.6 million) under a bridge financing facility and £1.14 million related to other acquisitions. Since European Wealth was founded in 2010, it had been partially funded by debt. 

Funding for the Newbridge acquisition will be met by a convertible loan underwritten by KPI, which is owned and controlled by Kingswood. 

There will be no change to Newbridge’s US management team, which will continue to be overseen by its CEO Leonard Sokolow. Thomas Casolaro remains as president. 

Last year, European Wealth agreed to buy a book of business worth £120 million held by UK-based Towry Asset Management. The acquisition led to European Wealth opening an office in South Africa earlier this year, where many of the book’s clients were based.